- Zimbabwe ranks as the second-most expensive fuel market in SADC and the fourth-highest in Sub-Saharan Africa
- The country spends over $1 billion annually on fuel imports, severely impacting its foreign currency reserves
- Urgent reforms, including tax reductions and increased competition in the ethanol market, are needed
Sub-Saharan Africa Fuel Prices as of 11 March
Source: GlobalPetrolPrices.Com, Equity Axis Research
Harare- Fuel prices play a pivotal role in shaping economic growth or decline, acting as a lifeline for trade and mobility. Globally, the average price of gasoline stands at 1.26 USD per litre, but significant disparities exist between nations.
Zimbabwe ranks as the second-most expensive fuel market in the Southern African Development Community (SADC) and the fourth-highest in Sub-Saharan Africa, with petrol and diesel prices hovering between 1.55 and 1.60 USD per litre according to the latest data released on 11 March by Global Petrol Prices.
This steep cost strains businesses and households, undermining economic activity in a country where trade and transportation rely heavily on affordable fuel.
Zimbabwe spends over 1 billion USD annually on fuel imports, draining scarce foreign currency reserves.
Africa March 11 Gasoline Prices
Source: GlobalPetrolPrices.Com, Equity Axis Research
Over the period from 2017 to 2025, the average price of gasoline in Zimbabwe was $1.45 per liter, peaking at an unprecedented $3.39 per liter in March 2019 and hitting a nadir of $0.46 per liter in February 2022.
Zimbabwe’s high fuel prices stem from multiple structural issues. Taxes and levies alone account for 0.52 to 0.54 USD per liter, constituting roughly 30% of the total pump price. Without these charges, diesel could retail at 1.10 USD per litre, aligning with regional averages.
However, the problem extends beyond taxation.
Fuel costs buildup in US$
Source: ZERA, Equity Axis Research
A duopolistic ethanol market exacerbates costs. Green Fuel, a joint venture between the state and private entities, dominates ethanol production, selling locally made ethanol at 1.10 USD per litre double the global benchmark of 0.50–0.70 USD.
Limited competition, despite other players like Triangle Limited entering the market, keeps blending costs artificially high.
To reduce fuel costs, Zimbabwe must adopt urgent reforms. Tax reductions on fuel could immediately lower prices, aligning levies with regional peers like Botswana, where taxes constitute less than 20% of pump prices.
Breaking the ethanol monopoly by licensing more producers would foster competition and lower blending costs.
Modernising refineries, storage facilities, and transport networks would reduce reliance on costly imports while expanding sustainable ethanol production using sugarcane could also curb petrol dependency.
Also, a strategic shift to solar energy could significantly reduce Zimbabwe’s reliance on costly fuel imports.
The country’s abundant sunlight averaging 3,000 hours of sunshine annually positions it to harness solar power for electricity generation, displacing diesel-powered generators widely used by households, industries, and farms.
Zimbabwe’s chronic power blackouts have exacerbated a reliance on fuel-powered generators increasing national costs. Frequent electricity outages force businesses, households, and critical institutions like hospitals to depend on diesel generators, while diesel remains the primary energy alternative.
Solar adoption offers a direct pathway to reduce fuel consumption, curb import bills, and alleviate pricing pressures caused by scarcity and monopolies.
Solar energy can displace diesel generators that dominate backup power during blackouts. Industries, farms, and households currently spend millions monthly on diesel to keep lights on and machinery running.
For instance, a single factory using 10,000 litres of diesel annually for generators could save over $15,000 by switching to solar-battery hybrid systems.
Petrolium oils imports in US$B
Source: Zimstat, Equity Axis Research
Scaling this transition nationwide would significantly reduce diesel imports, which account for nearly 70% of fuel costs.
Solar-powered electric vehicle (EV) charging infrastructure could reduce demand for petrol. While EVs remain limited in Zimbabwe, regional pilots such as Zambia’s solar charging corridors for buses and South Africa’s solar-taxi initiatives demonstrate fuel savings of 30–40% for fleets.
Incentivising solar charging stations in cities like Harare and Bulawayo, coupled with tax breaks for EV imports, could jumpstart this transition, targeting high-use sectors like public transport and delivery services.
The link between solar energy and fuel price reduction is clear: every kilowatt of solar power displaces diesel or petrol demand, easing pressure on imports and pricing.
By tackling blackout-driven fuel dependency through solar solutions, Zimbabwe could cut its annual fuel import bill by $400 million within five years, stabilise energy access, and redirect savings to healthcare, education, and infrastructure.
The transition requires political will to dismantle monopolies, incentivise solar innovation, and align policies with regional best practices.
Regional partners offer valuable lessons. South Africa maintains competitive fuel prices through biofuel tax incentives, private-sector participation, and efficient logistics networks. Botswana subsidises fuel via state-owned entities while keeping taxes low, ensuring affordability.
Mozambique leverages its offshore gas reserves to stabilize energy costs and attract refinery investments, while Angola balances oil revenue subsidies with gradual reforms to phase out unsustainable price caps.
Without systemic changes, Zimbabwe’s fuel prices will remain a drag on economic recovery. Addressing monopolies, modernizing infrastructure, and adopting regional best practices could unlock significant savings, fostering trade and easing inflationary pressures.
The stakes are high: affordable fuel is not just an economic imperative but a cornerstone of social equity in a nation battling inequality and stagnation.
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