Online Reporter
Mukudzei Chingwere, [email protected]
CABINET has moved to cushion Zimbabweans from surging energy costs by approving a strategic review of time-bound fuel taxes, a measure designed to dampen inflationary pressures triggered by the Middle East conflict. To further stabilise the domestic market, the Government is also weighing a significant hike in the mandatory ethanol blending ratio, potentially moving from E5 to E20 to reduce the nation’s import bill.
This follows President Mnangagwa’s assurance on Monday that his administration is putting in place measures to shield Zimbabwe from global economic disturbances caused by the Middle East conflict, which has disrupted international supply chains.
Addressing a post Cabinet media briefing yesterday, Information, Publicity and Broadcasting Services Minister Zhemu Soda confirmed the forthcoming adjustments.
“Cabinet considered and approved the report on the impact of the Middle East crisis on pricing of basic commodities as presented by the Minister of Industry and Commerce. While price hikes have been witnessed in the transport sector, in particular by passenger vehicle operators, Cabinet considered and approved the review of selected and time bound fuel taxes in order to contain inflationary pressures and safeguard consumer welfare,” said Minister Soda.
He added that Government is evaluating the option of increasing ethanol blending levels from E5 to E20 to help reduce the pump price of petrol.
“Appropriate refinements of the options are underway, and the necessary fuel price adjustments will be communicated in due course,” he said.
Local ethanol producers have previously indicated that shifting from E5 to E20 could save motorists approximately US$0.18 per litre — a significant reduction at the pump.
Minister Soda said Cabinet had also reviewed price movements and the availability of basic commodities between January and March 2026, taking into account the impact of ongoing geopolitical developments in the Middle East.
Despite disruptions in global oil markets and their knock on effect on fuel prices, domestic commodity prices had largely remained stable.
“Most businesses have not increased the prices of basic goods such as mealie meal, laundry soap, cooking oil, sugar, flour, rice, bath soap, washing powder, powdered or fresh milk, eggs, beef, chicken and salt. However, a few bread makers increased prices by an average of 10 percent,” said Minister Soda.
At the same briefing, Industry and Commerce Minister Mangaliso Ndlovu said Zimbabwe has adequate fuel stocks to absorb supply shocks and maintain pricing stability.
“We have adequate stocks both inland and in Beira that will see us not experiencing any supply shocks.
“We have adequate stocks for our industry,” said Minister Ndlovu.
Since the onset of disruptions linked to the Middle East conflict, Government, working with oil traders, has been diversifying supply routes away from affected regions. To enhance flexibility, the importation of diesel by road has been approved with immediate effect, supplementing existing pipeline and rail supplies.
Authorities have assured the nation that the country has more than three months’ supply cover from Beira and inland storage facilities.
Without Government intervention, diesel would have been priced at US$2,20 per litre instead of the current US$2,05, while petrol would have exceeded the present US$2,17 per litre. Diesel prices have been deliberately contained to lessen the impact on critical sectors including mining, agriculture, haulage and public transport.
Meanwhile, Cabinet has also approved a Memorandum of Understanding between Zimbabwe and Ghana on cooperation in the energy sector.
“The envisaged cooperation will foster stronger economic ties and enhance the existing friendly relations between the two countries. Mutually benefiting both parties, the Memorandum of Understanding outlines parameters for collaboration in key areas, including renewable energy, oil, gas, electricity and petroleum.
“The MoU offers strategic benefits for Zimbabwe such as enhancing security of energy supply, electricity trading, infrastructure development, promotion of renewable energy, and capacity building in transition to clean energy in order to accelerate its deployment,” said Minister Soda.
