Zambia Temporarily Suspends Fuel Taxes To Cushion Consumers

The Zambian government has temporarily suspended Excise Duty and zero-rated VAT on petrol and diesel for three months, from April to June 2026, in a bid to ease the impact of soaring global fuel prices caused by the ongoing conflict in the Middle East.

On Tuesday, 31 March, the Energy Regulation Board (ERB) announced major increases in domestic petroleum pump prices for April, citing sharp rises in international oil prices alongside a slight weakening of the Kwacha.

According to the ERB, global oil prices have surged due to heightened geopolitical tensions in the Middle East, with petrol up by 62.84%, diesel by 91.89%, and kerosene/jet fuel climbing over 100% on international markets.

Locally, the Kwacha slipped from K19.18/US$ to K19.30/US$, further adding pressure on domestic fuel costs.

To shield consumers, the government has temporarily suspended the excise duty and zero-rated VAT on petrol and diesel for three months. Despite this measure, pump prices have still been adjusted upwards.

The new national uniform pump prices per litre are: petrol K27.15 (up from K26.61), diesel K29.78 (up from K23.25), kerosene K32.26 (up from K21.06), and Jet A-1 K34.74 (up from K22.39).

The ERB confirmed that the revised prices took effect at midnight on 31 March 2026 and will remain in force until the next official review.

South Africa has also announced a temporary suspension of part of its fuel levy for one month in a bid to ease pressure on consumers. The move is expected to cost the government around R6 billion in lost tax revenue.

Last week, Namibia also took steps to shield motorists from rising fuel costs, cutting fuel levies by 50% for at least three months, through to the end of June.

Meanwhile, in Zimbabwe, fuel taxes remain a significant portion of pump prices. In March, taxes accounted for 86 cents of the US$2.17 per litre diesel price, and 42 cents of the US$2.05 per litre petrol price.

Finance Minister Mthuli Ncube has promised a “review of selected and time-bound fuel taxes,” but has yet to provide a timeline for any changes. April fuel prices are expected to be announced in the coming days.