March 19, 2026
RE: PLEA FOR GOVERNMENT INTERVENTION TO MITIGATE FUEL PRICE SHOCKS
We write as the Zimbabwe Taxpayers’ Platform (ZITAP), a network of institutions and individual taxpayers in Zimbabwe calling for the Government of Zimbabwe to immediately intervene and reduce the recently gazetted prices of petrol, diesel, and other fuels.
We have noted a Zimbabwe Energy Regulatory Agency (ZERA) media statement of March 18, 2026 indicating that pump prices, with immediate effect, would be $2,17 and $2.05 per litre of Blend Petrol and Diesel 50, respectively.
We also note the negative externality of the knock-on effect of global fuel price increases due to the Middle East crisis.
Kindly accept our plea to call for both short-term and long-term fiscal measures to buffer the economy from cost-push inflation, threatening to disrupt the current 30-year stability index of a 4% inflation rate.
In the short run, the Government could:
a) The current taxes of 42 and 86 cents per litre of diesel and petrol indicate 21% and 39% taxation rates. We plead with the Ministry of Finance, Investment Promotion and Economic Development to reduce these taxes, and peg them at 10% to cushion consumers and the economy.
b) Strategic reserve releases: The Minister of Finance can strategically release stocks of gold, lithium, diamonds or any such as has been saved through the five-cents/litre of strategic reserve tax. It is our sincere hope that these special reserve taxes have been saved for such uncertain moments as we confront. This is the time that the Mutapa Sovereign Wealth Fund also comes into play.
c) Cut-Government Expenditure: The Ministry of Finance to immediately issue a notice to all Ministries, save for essential services like health and education, to cut their recurrent expenditure pipeline by 15%. Non-essential travels, meetings, workshops and fairs must be stopped.
d) Issue public transport incentives- The government can re-start the National Railways of Zimbabwe (NRZ) train service both within major cities and inter-city as well to mitigate on transport costs. Registered public transport operators can also get some tax holidays to incentivise them to maintain low prices and keep prices low.
e) For tobacco farmers- reduce levies paid to the Tobacco Industry Marketing Board (TIMB) to limit the exposure to farmers who, on one hand face general low market prices and, on the other rising transport costs.
f) Open up the energy market- allow institutions with free funds and trade advantages to import their own fuel. This ensures adequate supplies and enables large consumers the opportunity to plan and reduce uncertainties.
Citizens and corporates to adopt the following:
These war-time moments are extra-ordinary, and require a 360-degree intervention by the state and citizens. We encourage citizens to also change their tastes, trends and cut unnecessary travels to reduce the demand for fuel. In particular, we propose the following:
a) Remote working and schooling for non-exam classes: If one assumes that Covid 19 era taught us to work and learn remotely, there could be merit in encouraging schools to start online education immediately, and restart face to face schooling in Term 2, May 2026. The assumption is that, by then, the war would have ended and global fuel prices stabilised. This remote working is also encouraged for non-essential sessions for the private sector.
b) Reduce speed – save fuel- It has been scientifically proved that moderate speeds save fuel. We appeal to the moral leadership of citizens to reduce speeds and save their money.
For the Long Term, the Government could:
a) Offer six months of 0% duty on Electric Vehicle imports- the exposure to global volatilities could be eased by a move towards electric vehicles. Zimbabwe can surely negotiate better terms with global lithium energy manufacturers to take advantage of Zimbabwe’s abundant supplies to, in turn, create trading advantages for Zimbabwe. If Electric Vehicles become competitive price-wise, rational Zimbabwean consumers will without cross over to this new technology. Thes duty free imports could also include equipment related to charging and servicing of these Electric Vehicles to boost the market.
b) Diversify fuel supplies- this includes the Government taking full advantage of opportunities opening up in Africa, Nigeria and Angola in particular. The Africa Continental Free Trade Area (ACFTA) suggests that it makes sense for Africa to trade more with Africa. The Mutapa Investment Fund can surely lead in getting deals/equity to support refineries in Angola and Nigeria and guarantee our future supplies through the Lobito corridor. On the same note, Zimbabwe’s gas fields in Gokwe, Hwange and Dande must be fully developed to begin to supply the local market.
We wish to discuss the consequences of non-intervention
The economy is a security issue. Given Zimbabwe’s largely informal economy, it implies that the economy is price sensitive. Any marginal increase in prices does not only generate inflationary pressure statistically. It affects real people and create moments of discontent, which, other things being equal, could trigger public discontent.
Secondly, the argument of lost tax revenue by lowering taxes can easily be absorbed by a similar public sector contraction by limiting ALL non-essential expenditure by Ministries and other government departments. Successive Auditor General reports indicate lots of waste by Ministries and departments without consequence. This is the time for the Ministry of Finance to stop, for good, waste of public resources/corruption. The measures enshrined in Chapters 9 and 17 of the Constitution of Zimbabwe must apply without favour. Whilst government workshops, trips and meetings are normal, they are not essential in such extra-ordinary moments. Only crucial expenditure must be allowed to subsist.
Noting Zimbabwe’s all-of-government’s policy formulation process under National Development Strategy 1 and 2, one would expect extra ordinary stabilisation sessions chaired by the Office of the President and Cabinet to induce a sense of urgency and policy congruence in response to this existential threat.
This advisory is given in the public interest. It is part of the Zimbabwe Taxpayer’s Platform (ZITAP) call for tax reduction and that the government size must also be reduced to leave space for private sector growth.