Zimbabwe predatory fuel price increases

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Tendai Ruben Mbofana

The announcement by the Zimbabwe Energy Regulatory Authority regarding the March 2026 fuel prices is not merely a policy update but a direct assault on the livelihoods of a population already gasping for economic air.

To describe the latest hike as daylight robbery is not an exaggeration but a sober assessment of a predatory pricing model that has no parallel in the Southern African Development Community.

While the government attempts to cloak these increases in the convenient garb of geopolitical instability in the Middle East, the numbers tell a much different and far more damning story.

We are witnessing a systemic transfer of wealth from the pockets of the poor into the coffers of a greedy administration and a few well-connected individuals.

The disparity between Zimbabwe and its regional neighbors is nothing short of scandalous.

According to recent data, while South Africa saw a modest fuel price increase of approximately 2 percent and Zambia faced a 6 percent rise, Zimbabwe has been slapped with a staggering 39.1 percent shock.

Petrol now sits at a breathtaking $2.17 per litre.

In contrast, South African motorists are paying roughly $1.06 per litre, while those in Botswana and Namibia pay $1.10 and $1.15 respectively.

Even landlocked Zambia, which shares many of our logistical challenges, manages to keep prices at $1.60.

There is no economic logic that can justify why a litre of petrol in Harare should cost more than double what it does in Pretoria or Gaborone.

The claim that this is due to global conflict is a transparent lie because if the Middle East were truly the primary driver, we would see a uniform surge across the SADC region rather than this localized Zimbabwean catastrophe.

The true culprit is revealed in the fuel price build-up provided by the authorities themselves.

A deep dive into these figures shows that the government has turned the fuel pump into a primary taxation tool.

For every litre of petrol sold at $2.17, nearly 86 cents vanish into various taxes and levies.

This is a parasitic arrangement where the state secures its revenue by strangling the productive sectors of the economy.

When almost 40 percent of the pump price is comprised of government-imposed fees, it becomes clear that the “cost pressures” mentioned by the regulator are entirely self-inflicted.

Instead of protecting the public, the government is using fuel as a captive market to fund its own excesses while the citizens are saddled with grinding poverty.

Beyond the tax burden, we must confront the elephant in the room which is the ethanol monopoly.

The current pricing structure includes an ethanol cost of $1.10 per litre.

This is an exorbitant rate that exists only because Green Fuel Ltd enjoys an unchallenged monopoly over ethanol production and the mandatory blending policy.

We are essentially forced by law to subsidize the immense wealth of individuals like Billy Rautenbach at the expense of every Zimbabwean who needs to take a bus to work or transport goods to the market.

The refusal to open up the ethanol market to competition or to allow for cheaper imports is a clear sign of a government that prioritizes the interests of the elite over the welfare of the masses.

Breaking this monopoly and allowing for a transparent, competitive procurement process for ethanol could immediately shave significant cents off the final pump price.

The consequences of this greed are already rippling through the economy.

Fuel is the lifeblood of commerce, and when the price of diesel and petrol spikes so dramatically, the cost of everything else follows.

We are on the verge of a massive inflationary wave that will wipe out the meager savings of the working class.

Basic commodities like bread, mealie-meal, and cooking oil will inevitably become more expensive as transport and production costs are passed down to the consumer.

The single-digit inflation figures that the government has spent months bragging about are now a pipe dream.

You cannot have price stability in an environment where the most basic input for the economy is the most expensive in the region.

This is a manufactured crisis that will push millions more into food insecurity and desperation.

To remedy this situation, we do not need more excuses about global supply chains.

We need a radical overhaul of our domestic fuel policy.

First, the government must significantly reduce the taxes and levies that currently inflate the price by nearly a dollar per litre.

If other regional governments can maintain lower tax thresholds to protect their citizens, there is no reason why Zimbabwe cannot do the same.

Second, the mandatory blending policy must be reviewed, and the monopoly on ethanol must be dismantled immediately.

Opening the market would allow for price discovery and ensure that consumers are not being overcharged to line the pockets of a few “petropreneurs.”

Furthermore, we should look at regional best practices.

Many of our neighbors utilize strategic fuel reserves more effectively to dampen the impact of global price swings.

While our authorities claim to have three months of supply cover, the immediate price hike suggests that these stocks are either non-existent or are being sold at replacement cost rather than weighted average cost.

There is a profound lack of transparency in how the National Oil Infrastructure Company of Zimbabwe and Petrotrade operate.

We need a public audit of the fuel procurement process to understand where the leakages are and why our logistics, including the pipeline from Beira, seem to be more expensive than road transport in other countries.

The current situation is unsustainable and morally indefensible.

The government of Zimbabwe is effectively behaving like a predator, waiting at the pump to snatch the last few cents from a population that has already given everything.

We cannot continue to be the regional outlier in fuel costs while our economy remains the most fragile.

It is time for the authorities to stop hiding behind international conflicts and take responsibility for the parasitic policies they have enacted in Harare.

Without a significant reduction in fuel taxes and the removal of the ethanol monopoly, the promise of economic prosperity will remain a cruel joke.

The people of Zimbabwe deserve a government that facilitates their survival rather than one that thrives on their economic strangulation.