- The Ministry of Finance, Economic Development, and Investment Promotion has called for LPG operators to lower prices following the removal of Value Added Tax (VAT) on LPG, effective January 1, 2025
- The new official price for LPG is set at US$1.58 per kilogram
- On January 7, 2025, the Zimbabwe Energy Regulatory Authority (ZERA) specified the maximum prices for LPG following the VAT removal, but compliance has been lacking
Harare-The Ministry of Finance, Economic Development, and Investment Promotion has reiterated its call for Liquefied Petroleum Gas (LPG) operators to lower prices following the removal of Value Added Tax (VAT) on LPG gas, effective January 1, 2025.
This comes after some LPG operators failed to comply with the regulation to reduce their prices, with many pricing their gas between US$1.60 to US$2 per kilogram.
The new official price for LPG has been set at US$1.58 per kilogram.
The VAT removal, implemented under Statutory Instrument 195 of 2024, was intended to reduce the cost of LPG gas for citizens who rely on it as a source of energy amid ongoing blackouts. However, the government has raised concerns that some LPG suppliers have not adjusted their prices accordingly.
‘’On January 7, 2025, the Zimbabwe Energy Regulatory Authority (ZERA) issued a public statement specifying the maximum prices to be charged by LPG gas operators following the VAT removal. Despite this, compliance has been lacking.
‘’I therefore urge LPG operators to reduce their prices by the extent of the VAT relief as intended,” said the Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube.
The directive from ZERA is part of broader measures to address the electricity energy deficit in the country.
Water levels for power generation at Lake Kariba had depleted to below 4% in December, resulting in an average generation of less than 100 MW per day.
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