Innocent Sibonginkosi Ncube | Zim GBC News
HARARE — The Zimbabwe Energy Regulatory Authority (ZERA) has announced updated petroleum prices effective 4 March 2026, with government subsidies cushioning consumers from sharper increases driven by international market volatility.
In a statement released Wednesday, ZERA advised that diesel will now retail at ZWG 45.55 per litre or US$1.77 per litre, while blended petrol (E5) will cost ZWG 44.01 per litre or US$1.71 per litre. The prices take immediate effect and will remain in place for the next two weeks.
“Without government cushioning, the actual prices would have been US$1.90 per litre for diesel and US$1.81 per litre for blend,” ZERA stated, attributing the relatively lower rates to government intervention aimed at protecting consumers from the full impact of international price shifts.
The regulatory body assured stakeholders that it would continue monitoring market developments closely to ensure adequate supply nationwide.
Bulawayo Businesses Skeptical of ZiG Adoption
The announcement comes just two days before the anticipated introduction of new ZiG banknotes, raising questions about whether fuel stations in Bulawayo and parts of Matabeleland will accept the local currency.
Despite ZERA publishing prices in both ZiG and US dollars, business communities in Bulawayo have historically resisted trading in local currency. Vendors, informal traders, and formal businesses in the region have consistently preferred US dollar transactions, even as the local currency circulates more freely in Mashonaland provinces.
On Monday, Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu faced questions from journalists at a Bulawayo hotel regarding fuel purchases using ZiG but reportedly skirted direct answers, leaving stakeholders uncertain about enforcement mechanisms.
Government’s Currency Challenges Persist
Since the Zanu-PF government led by President Emmerson Mnangagwa introduced the ZiG as the latest iteration of local currency, adoption has been uneven. Analysts point to deep-seated trust issues, particularly in regions like Bulawayo where memories of hyperinflation and repeated currency collapses remain fresh.
“Bulawayo business community and its surroundings, including vendors, have vehemently refused to trade in the local currency,” sources indicate, despite the fact that in most parts of Mashonaland the local currency circulates actively.
Critics argue that government intervention has been lacking to assist the populace of Bulawayo by enforcing the use of the ZiG, creating a two-tier currency system that undermines the monetary policy objectives.
ZERA Encourages Verification
ZERA reminded stakeholders that all petroleum price releases can be verified through its official channels, including its website, Facebook page, and X (formerly Twitter) account.
“As the new notes enter circulation, it remains to be seen whether fuel stations in Matabeleland will accept ZiG or continue transacting exclusively in US dollars,” observers noted.
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