President Emmerson Mnangagwa has said the government is implementing a cocktail of measures to ensure that fuel prices do not spiral out of control in the face of global value chain disruptions.
He wrote in his weekly column published in The Sunday Mail at the weekend:
Upon realising the turbulence in the fuel market, I directed that duty on fuels be reduced by US 13 cents. As I write, diesel is now zero-rated, duty-wise. I did more. From the President’s Strategic Reserves, I released 30 million litres of fuels to ensure the supply in the market remains stable and affordable.
Fuel prices went up in February with the government attributing the increase to the war between Russia and Ukraine which they said disrupted global trade as the two countries are main producers of oil.
Analysts, however, observed that while the war had an effect on economies worldwide, fuel in Zimbabwe was more expensive when compared to its regional counterparts and this was due to higher taxes. That is when President Mnangagwa directed that the taxes be reduced.
Recently, the High Court scrapped carbon tax and a NocZim redemption levy that had been introduced in 2020 by Finance and Economic Development Minister, Professor Mthuli Ncube, saying he had usurped Parliamentary roles of making laws.
The ruling is expected to result in reduced fuel prices.
More: The Standard