Fuel Prices Jump to US$2 Per Litre

By Business Reporter-Fuel prices in Zimbabwe have surged past the US$2 mark per litre, in a development that is likely to trigger inflationary pressures across key sectors of the economy.

The Zimbabwe Energy Regulatory Authority (ZERA) has announced a sharp rise in fuel prices for March 2026.

Diesel, which had been selling at US$1.77 per litre over the past two weeks, has now jumped to US$2.05, while petrol has risen from US$1.71 to US$2.17.

In a notice issued on Wednesday, 18 March 2026, ZERA also confirmed that the government has, with immediate effect, approved the importation of diesel by road, in addition to existing pipeline and rail deliveries.Zimbabwe economic report

The Authority said:

“The Government, through ZERA, continues to monitor the security of supply of petroleum products in the market.

In that regard, Government notifies stakeholders that there are enough stocks of petroleum products in the supply chain, starting from Beira and inland storage facilities with more than three months’ supply cover.

Working with oil traders, the Government is opening up supply routes not affected by the current conflict in the Middle East.

However, while Government ensures security of fuel supply, ZERA notices that the cost pressures are piling up and theserequire that prices be reviewed for two weeks to avoid fuel shortages and arbitrage.

Government is taking deliberate actions to ensure that fuel brought into the country is accessed by all fuel stations, especially those in the far-flung areas of the country and Government, through its companies, Petrotrade and NOIC will be active in that regard.

The new price of diesel has been set with a view to mitigate the impact of the increase to the mining, agriculture, haulage services and passenger transport sectors.

Government will endeavour to keep the price of diesel lower than what it ought to be. Without Government intervention, the price of diesel would have been US$2.20 per litre.


As a way to open up other avenues for the importation of diesel, Government has, with immediate effect, approved the importation of diesel by road, in addition to pipeline and rail.”

However, beyond the official explanation of global supply disruptions and rising costs, the fuel sector in Zimbabwe remains deeply entangled in political and business interests linked to the country’s ruling elite.

President Emmerson Mnangagwa’s administration has, over the years, centralised control of fuel procurement and distribution through state-linked entities such as the National Oil Infrastructure Company (NOIC) and Petrotrade. This structure has effectively limited competition while granting significant influence to politically connected business figures.Politics

Among those widely associated with Zimbabwe’s fuel and energy sector is businessman Kudakwashe Tagwirei, whose companies have been repeatedly linked to large-scale fuel importation, financing arrangements, and command-style government contracts. Tagwirei, a close ally of Mnangagwa, has been accused by critics and analysts of benefiting from opaque fuel supply deals and preferential access to foreign currency.

The latest price hike, therefore, not only reflects global oil market volatility and supply chain disruptions linked to conflict in the Middle East, but also raises renewed questions about who ultimately benefits from Zimbabwe’s fuel pricing model.

With fuel being a key driver of production and transport costs, the increase is expected to cascade across the economy—pushing up prices of basic goods, fares, and services—while ordinary citizens bear the brunt.

As government insists the adjustments are necessary to maintain supply stability, observers argue that greater transparency in the fuel sector remains critical to ensure that price increases are not disproportionately benefitingpolitically connected elites at the expense of the public.