By ZITAP staff writer
The Zimbabwe Energy Regulatory Authority (ZERA) has issued an immediate notice stating that fuel has increased from an average $1.51/litre to $1.71. This 13.2% increase is a big shock to an economy that largely relies on fuel for its domestic, commerce and industrial processes.
This fuel increase has a propensity to trigger cost-push inflation in Zimbabwe. Sadly, this happens at a time Zimbabwe was celebrating its 30-year milestone of having a single-digit inflation rate. Zimbabwe reported that its monthly inflation rate for February 2026 was 3.4%.
It is too early to estimate how Zimbabwe will buffer the effects of these external pressures. However, as a think-tank, it is here that we call upon the Government of Zimbabwe to reduce expenditure and save more to support the local currency. Without sound money, the latitude to do business narrows, and hence triggers capital flight. The government must reduce the cost of doing business to support free enterprise. The Africa Continental Free Trade Area (ACFTA) remains a noble project as international trade is a crucial tenet of poverty reduction and liberty on the continent.