• ZERA has raised July fuel prices, with petrol now at US$1.56/litre and diesel at US$1.55/litre
• Global oil prices spiked in June after U.S. airstrikes on Iran’s nuclear sites, escalating conflict in the Middle East
• Zimbabwe imports all refined petroleum and lacks significant strategic fuel reserves or buffer mechanisms

Harare -The Zimbabwe Energy Regulatory Authority (ZERA) has announced an upward adjustment in fuel prices for the month of July, reflecting both global oil market trends and persistent domestic vulnerabilities.

According to the latest pricing schedule, the cost of petrol has risen to US$1.56 per litre, up from US$1.54 in June, while diesel now stands at US$1.55, up from US$1.50.

The increases appear modest in nominal terms but signals a continuation of fuel price volatility in Zimbabwe, driven in large part by shifts in global benchmark oil prices and the structural exposure of the country’s fuel supply system to external factors.

Globally, the first half of 2025 has been characterised by renewed uncertainty in the oil markets.

Following a U.S. airstrikes on Iran’s nuclear facilities at Fordo, Natanz, and Isfahan in mid June, intensifying a conflict sparked by Israeli attacks on Iranian targets two weeks earlier, oil prices  skyrocketed to a five-month high on the 23^rd of June, with Brent crude surging 5.7% to US$81.40 a barrel before settling at US$78.39, with U.S. West Texas Intermediate rising 2.6% to US$75.76.

Supply side decisions by OPEC+, particularly ongoing production restraint from Saudi Arabia and Russia, have kept global inventories in check. On the demand side, seasonal summer consumption in the European countries has returned in line with pre-pandemic norms, while renewed geopolitical tensions including instability in the Middle East and disruptions in shipping routes like the Red Sea have added to price pressures.

These global factors have a direct bearing on countries like Zimbabwe, which import all their refined petroleum products and lack the financial or infrastructural depth to absorb sustained cost increases.

Within the domestic context, Zimbabwe remains uniquely exposed to fuel price swings due to its heavy dependence on US-dollar-denominated imports and limited buffer mechanisms.

ZERA uses a monthly pricing formula that takes into account the Free-On-Board (FOB) costs at international ports, inland logistics, insurance, and exchange rate benchmarks.

The monthly adjustments offer transparency, but also expose consumers and businesses to frequent price recalibrations.

The July increase, particularly the five cent rise in diesel, is likely a reflection of heightened global diesel prices amid rising industrial demand, as well as increased inland distribution costs linked to regional logistics bottlenecks.

Fuel remains a key cost driver across Zimbabwe’s economy, and any significant adjustment at the pump  quickly ripples through multiple sectors.

For businesses, especially those in agriculture, mining, and logistics, if trend of the rising cost of diesel continues it increases operational expenses and puts pressure on already tight margins.

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