Zimbabwe Introduces US$0.005 Levy On Petrol And Diesel Fuel

Business Correspondent

The Minister of Energy and Power Development, Edgar Moyo, has authorized the Zimbabwe Energy Regulatory Authority (ZERA) to implement a new US$0.005 petroleum levy per litre on both petrol and diesel fuel. This decision is formalized in Statutory Instrument 168 of 2024, which was published in a supplement to the Zimbabwean Government Gazette on Friday, October 11th.

Currently, taxes account for a significant 35% of the overall fuel price in Zimbabwe, with fuel taxes contributing approximately 70% of the country’s excise duty revenue last year.

According to the statutory instrument, the funds collected from this new levy will be utilized by ZERA to enhance compliance with regulations and standards within the petroleum sector.

“The collected funds will also be used to procure necessary tools and equipment,” Moyo stated.

The full text of Statutory Instrument 168 of 2024 outlines the following key points:

1. The regulations are officially titled the Petroleum (Levy) Regulations, 2024.
2. ZERA, with the Minister’s approval, has imposed a levy of USD 0.005 per litre on diesel and petrol, collectable upon importation of these proproduct
3. The National Oil Infrastructure Company of Zimbabwe (NOIC) and the Zimbabwe Revenue Authority (ZIMRA), along with its designated agents, are authorized to collect the petroleum levy, as per the terms agreed upon with ZERA
4. The funds collected will be allocated for various purposes, including:

• Strengthening compliance within the petroleum sub-sector.
• Training and development.
• Procuring tools.
• Research and development.
• Other related activities deemed necessary.

1. Additionally, any excess funds will be directed towards enhancing access to energy in rural areas, as well as the procurement and construction of properties to promote renewable energy uptake.

This new levy is expected to have implications for fuel prices and the overall energy landscape in Zimbabwe, as the government seeks to bolster regulatory compliance and improve energy access across the country.

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