- Diesel prices fell by 3% from US$1.58 in February to US$1.54 per litre due to inconsistent demand and fluctuating global oil prices
- Petrol prices rose by 1% to US$1.55 per litre from US$1.53
- This reduction is due to routine maintenance by primary ethanol producers in Zimbabwe, including Green Fuel and Tongaat Hulett Zimbabwe
Harare-The Zimbabwe Energy Regulatory Authority (ZERA) has decreased diesel prices for March, effective 4 March 2025, from February's prices in US dollar terms.
Diesel prices went down by 3% from US$1.58 in February to US$1.54 per litre in March due to inconsistent demand and fluctuating oil prices globally.
However, petrol prices rose by 1% to US$1.55 per litre from US$1.53.
This rise in petrol prices is attributed to the mandatory ethanol blend ratio for fuel, which has been reduced from 15% to 10%.
This reduction is due to the primary companies that produce mass ethanol in Zimbabwe, mainly Green Fuel in Chisumbanje and Tongaat Hulett Zimbabwe (operating through their Triangle Sugar plant) in Chiredzi, undergoing routine maintenance in the first months of the year, which disrupts ethanol production.
A trend of ethanol reduction between February and April, sometimes as low as 5%, has been witnessed in previous years.
As a result, blended fuel prices increase because ethanol is cheaper than pure fuel, and reducing its proportion in the blend increases the overall cost of fuel production.
International petrol prices rose between January 31 and February 27, 2025.
The price hikes also come amid geopolitical tensions, as Russia continues to face Western sanctions that impact its oil exports, leading to extended voluntary production cuts to stabilize global prices.
The country has significantly increased oil exports to Asian markets, particularly China and India, while forging new trade agreements with non-Western nations.
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