Zimbabwe Fuel Prices Surge; Tax Hikes Drive Regional Highest Costs

Zimbabwe's fuel prices increased sharply, with petrol now US$2.17 per litre, the highest in Southern Africa. This hike is primarily attributed to a substantial rise in taxes, which jumped from US$0.5209 to US$0.857 per litre in two weeks. Government authorities cite rising global oil costs, partly due to Middle East conflicts, as a contributing factor to prevent shortages. However, an analysis by iHarare reveals domestic tax increases, not global market shifts, are the dominant driver. The government's 64% tax increase directly translates to the US$2.17 petrol price and US$2.05 for diesel. Bottom Line: This policy shift increases operational costs and could impact national economic stability and public sentiment.