Government warns LPG operators to reduce prices

Judith Phiri

Business Reporter

THE Government has issued a stern warning to liquefied petroleum gas (LPG) operators to comply with the removal of value-added tax (VAT) on LPG and reduce their prices, effective January 1, 2025.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the removal of VAT was aimed at giving relief to citizens who use LPG as a source of energy.

However, some operators have not reduced their prices, thereby profiteering from the VAT relief.

“The intention was to lower the prices of LPG by the extent of the VAT that was being charged previously,” Professor Ncube said.

“This is unethical and we urge LPG operators to reduce their prices by the extent of the VAT relief as intended.”

The Zimbabwe Energy Regulatory Authority (Zera) announced new prices of US$1.61 per kilogram, down from US$1.86 per kilogram and ZWG41.63 per kilogram, down from ZWG47.51 per kilogram.

Retailers are required to display the updated prices at their outlets but are permitted to sell LPG at lower prices depending on their trading advantages.

Professor Ncube emphasised that reducing prices would give relief to consumers and citizens and is consistent with the Government’s efforts towards greening the economy.

The Government removed VAT on LPG through Statutory Instrument 195 of 2024, effective January 1, 2025.