Zimbabwe fuel prices remain higher in the region

Zimbabwe has reduced fuel prices to below US$2 per litre following improved stability in global oil markets and the reopening of the Strait of Hormuz, easing pressure on motorists and businesses.

According to the Zimbabwe Energy Regulatory Authority (ZERA), diesel prices have been reduced to US$1.99 per litre from US$2.09, while petrol now costs US$1.98 per litre, down from US$2.08.

The new prices took effect on June 19 and will remain valid for the next two weeks.

ZERA said the reductions reflect easing global supply concerns that had previously driven international oil prices higher following tensions in the Middle East and disruptions linked to the Strait of Hormuz, one of the world's most important oil shipping routes.

The price adjustment is expected to bring some relief to consumers and businesses that have been grappling with elevated transport and operating costs. Economists say lower fuel costs could gradually filter through to the prices of goods and services if the trend is sustained.

However, despite the reductions, Zimbabwe continues to have some of the highest fuel prices in the region. Petrol and diesel prices remain above those prevailing in neighbouring countries such as Mozambique, where fuel averages about US$1.30 per litre, South Africa at around US$1.42 per litre, and Kenya, where prices are approximately US$1.65 per litre.

Energy and Power Development Minister July Moyo said the government would continue to review local fuel prices in line with international market developments while maintaining adequate fuel supplies.

"We increased prices when we were affected by developments in the Strait of Hormuz. While those increases were in line with global movements, Zimbabwe already had relatively higher baseline prices," Moyo said.

"Our focus remains on ensuring uninterrupted supply."

The minister said authorities remain committed to preventing fuel shortages and maintaining strategic reserves, adding that President Emmerson Mnangagwa had directed government to prioritise fuel security during the period of global uncertainty.

Moyo indicated that further price reductions could follow if current trends in international oil markets continue.

The Strait of Hormuz became a major concern for global energy markets during recent tensions in the Middle East, with fears of supply disruptions pushing Brent crude oil prices above US$100 per barrel.

The resulting increase in international oil prices saw Zimbabwe's petrol prices climb to approximately US$2.23 per litre at their peak, placing additional strain on households, transport operators and businesses.

Authorities say maintaining reliable fuel supplies while responding to international price movements remains a key policy objective as the country seeks to balance affordability with energy security.