Govt moves to cut fuel taxes as Middle East crisis rattles prices

STAFF WRITER
CABINET has approved plans to cut selected, time-bound fuel taxes in a bid to ease mounting inflationary pressures and shield consumers from rising costs triggered by fuel supply disruptions linked to the ongoing Middle East conflict.
The intervention comes as authorities also weigh increasing ethanol blending in petrol from the current E5 to E20, a move aimed at delivering immediate relief at the pump.
Addressing a post-Cabinet media briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister, Dr Zhemu Soda, said the government had taken note of escalating price pressures, particularly in the transport sector.
“Cabinet considered and approved the report on the impact of the Middle East crisis on pricing of basic commodities as presented by the Minister of Industry and Commerce,” said Dr Soda.
“While price hikes have been witnessed in the transport sector, particularly among passenger transport operators, Cabinet approved a review of selected, time-bound fuel taxes to contain inflationary pressures and safeguard consumer welfare.”
Beyond tax relief, government is actively exploring a significant shift in fuel composition, with plans to raise ethanol blending ratios as part of a broader strategy to reduce dependence on imported fuel and cushion consumers.
“Government also considered increasing ethanol blending of petrol from the current E5 to E20 level, with a view to reducing the pump price of petrol on the local market,” Dr Soda said.
“Appropriate refinements of the options are underway, and the necessary fuel price adjustments will be communicated in due course.”
Industry projections suggest the proposed transition could deliver tangible savings. Local ethanol producers have previously indicated that a shift from E5 to E20 could reduce pump prices by approximately US18 cents per litre — a meaningful reprieve for motorists and businesses already grappling with rising operating costs.