Zimbabwe government has gazetted new regulations on excise duty on fuel, giving legal effect to recent fuel adjustments.
The regulations are contained in Statutory Instrument (SI) 87 0f 2020 published this week.
In the Gazette, the Finance Minister, Mthuli Ncube, raised duty of fuel by about 63%, making Zimbabwe’s fuel most expensive in the region.
The development comes at a time when the price of crude oil is coming down.
Duty for leaded and unleaded petrol, went up 63% to ZWL$7,2787 a litre from ZWL$4,44 while diesel is now attracting ZWL$5, 8197 a litre from ZWL$4,26, which translates to a 365 increase.
The SI also prescribes excise duty threshold for power kerosene and other illuminating or heating kerosene at ZWL$5,8197 from ZWL$4,26.
“It is hereby notified that the Minister of Finance and Economic Development has in terms of Section 225 of the Customs and Excise Act [Chapter 23;02] made the following notice:
“The Notice may be cited as the Customs and Excise (Tariff) (Amendment) notice, 2020 (No.15).
“Part 11 of the second schedule of the customs and excise (tariff) notice, 2017, published in SI 53 of 2017 is amended by the repeal of the following; leaded petrol and unleaded ZWL$4,44 per litre for quantity of a kilogramme,cubic metre square or litre.
“Power kerosene, having a density at 20C expressed in kilogrammes per litre of no lower than 0.796 and a flash point (closed test at sea level) of not lower than 21C and not higher than 44C at ZWL$4,26 per litre.
Consequently, the price of petrol has gone up to ZWL$21,77 from ZWL$18,70 while diesel is now retailing at ZWL$21,52 a litre from ZWL$18,66 per litre.