CCZ calls for short-run measures to cushion consumers from the fuel shock

Nqobile Bhebhe

THE Consumer Council of Zimbabwe (CCZ) has raised concern over the sharp increase in fuel prices, warning that the hikes will severely affect low-income households already grappling with rising cost of living pressures.

In a statement, CCZ chief executive officer, Mrs Rosemary Mpofu said the recent fuel price adjustments were not just an energy issue, but a major cost of living concern with far-reaching implications across the economy.

“The Consumer Council of Zimbabwe notes with concern the sharp rise in fuel prices within only two weeks. ZERA’s March notices show that diesel moved from US$1.77 per litre on 4 March 2026 to US$2.05 on 18 March 2026, while Blend E5 rose from US$1.71 to US$2.17 reflecting a 15.82% and 26.90% respectively.

“On 4 March 2026 blend rose by 9.62% from US$1.56 to US$1.71 whilst diesel moved by 16.45% from US$1.52 to US$1.77. Overall, diesel and petrol rose by 34.87% and 39.10% from the period before 4 March 2026 to date correspondingly.

“For consumers, this is not just an energy issue; it is a cost of living issue because fuel feeds directly into transport fares, food distribution, informal trading, manufacturing and the delivery of essential services.”

CCZ noted that the initial increase had limited immediate impact on retail prices, but the subsequent surge has triggered broader price adjustments.

“The first increase produced only a mild retail response because some firms were still selling old stock, while others may have expected the international shock to ease.

‘What changed thereafter was the escalation of conflict in the Middle East from general tension to direct threats against energy infrastructure and export routes. Once oil markets began pricing in higher supply risk, freight, insurance and replacement costs, a second domestic increase became difficult to avoid.”

The council, however, pointed out that domestic pricing structures also play a significant role in determining pump prices.

“However, the ZERA price build-up also shows that the final pump price is not determined by import cost alone. It includes taxes and levies, administrative charges, blending costs, distribution costs and margins.

“On the latest build-up, taxes and levies alone account for US$0.422 per litre on diesel and US$0.857 per litre on Blend E5. This means Government, as much as it cannot control the external shock itself, could still cushion consumers by reviewing the domestic components of the fuel price,” Mrs Mpofu added.

CCZ expressed particular concern over the impact on vulnerable families, noting that basic commodities were already on an upward trend.

“CCZ is particularly concerned about the effect on the low income urban family basket for a family of six. In February 2026, the basket stood at ZWG20,450.90, or US$600.48 and some items had already started rising, including margarine, tea leaves, fresh milk and tomatoes.

“These are among the products that tend to respond quickly to transport and distribution cost increases. In practice, the first round effects were seen in commuter fares, milk and bread distribution, fresh produce and frequently purchased grocery items. For low income households, every extra dollar spent on transport reduces what is available for food, rent, school needs and health care.”

The consumer watchdog urged Government to take immediate measures to cushion citizens from the rising costs.

“CCZ therefore urges Government to act in the short run by temporarily reviewing selected fuel taxes, levies and administrative charges; prioritising relief for public transport and essential food supply chains; and intensifying monitoring of fares and basic commodity prices to curb speculative markups.”

The council also called on businesses and transport operators to act responsibly in their pricing.

“Businesses and transport operators must also exercise restraint. Fuel is a legitimate cost driver, but it must not become a blanket excuse for unjustified price increases. Zimbabwe has made progress in restoring relative price stability, and those gains should be protected.

“ CCZ will continue to monitor the market, engage Government and regulators, and advocate for measures that protect vulnerable consumers while maintaining orderly fuel supply.”