The Government of Zimbabwe, through the Ministry of Finance, Economic Development and Investment Promotion, has increased the Strategic Fuel Reserve Levy on both petrol and diesel.
According to Statutory Instrument 50 of 2025, the revised levy came into effect on 9 May. Petrol is now subject to a levy of US$0.2470 per litre, up from US$0.1770, representing a 28.34% increase. The levy on diesel has also risen, from US$0.1570 to US$0.1870 per litre, an increase of approximately 19.1%.
The Strategic Fuel Reserve Levy is a key element of the national fuel policy, with funds used to build and maintain emergency fuel reserves.
These stockpiles are intended to ensure fuel availability during times of disruption caused by geopolitical tensions, supply chain challenges, or other global crises.
Economist Prosper Chitambara welcomed the move, saying it reflects forward planning by the government, especially amid rising uncertainty in global trade. He said:
Fuel is the lifeblood of the economy. Without a robust strategic reserve, we are at the mercy of international disruptions.
This measure is about protecting essential sectors – agriculture, transport, and healthcare – that depend on consistent fuel access.
However, Chitambara warned that the levy increase comes at a time when Zimbabwe already has some of the highest fuel prices in the region, largely due to multiple taxes and levies.
He urged policymakers to explore measures that could ease the burden on consumers and help prevent a ripple effect on inflation.
The Zimbabwe Energy Regulatory Authority (ZERA) has set the pump prices for May 2025 at US$1.61 per litre for petrol and US$1.52 per litre for diesel. ZERA also announced that fuel prices will remain unchanged throughout the month.
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