ZERA slashes LPG price
STAFF WRITER
The Zimbabwe Energy Regulatory Authority (ZERA) has announced a 13% reduction in liquefied petroleum gas (LPG) prices following the removal of Value Added Tax (VAT) on the product.
In his 2025 national budget statement, Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, underscored the importance of LPG as a cleaner and more sustainable energy source, especially as electricity shortages persist in the country.
With increased reliance on LPG for cooking and heating, this move is expected to ease energy costs for households and businesses.
The exemption of VAT, effective January 1, 2025, has reduced LPG prices from US$1.86 to US$1.61 per kilogramme. In local currency, the price has dropped from ZWG47.51 to ZWG41.63 per kilogramme.
In a statement, ZERA confirmed the adjustment:
“Stakeholders are advised that the LPG prices for December 2024 were calculated in accordance with the Petroleum (Liquid Petroleum Gas Pricing) Regulations, 2021 (Statutory Instrument 90). However, following the removal of Value Added Tax (VAT), the prices have been reduced, as follows: US$1.61/kg or ZWG41.63/kg.”
Retailers are required to display the revised prices prominently at their outlets but may sell LPG at lower prices if trading conditions allow.
LPG consumption in Zimbabwe has steadily grown, with nearly 400m kilogrammes used between 2015 and March 2024, primarily imported from regional producers.
ZERA continues to promote sustainable energy solutions, including renewable energy projects like net metering, mini-grids, and independent power producers (IPPs). The removal of VAT on LPG aligns with Zimbabwe’s broader energy strategy to enhance access to affordable, clean energy while reducing environmental degradation caused by firewood and charcoal use.
This policy is a key step toward achieving the country’s sustainable energy goals by 2030.
