Zimbabwe imposes another levy on expensive fuel in the region

The Zimbabwe Energy Regulatory Authority (ZERA) has introduced a nominal levy on both petrol and diesel to support its regulatory and compliance enforcement efforts, as well as to promote renewable energy access, particularly in rural areas. The levy, set at US$0.005 per litre, was announced in a Statutory Instrument published in the Government Gazette last Friday, in accordance with the Petroleum Act.

Approved by Energy and Power Development Minister Edgar Moyo, the levy will be collected upon the importation of petroleum products. The National Oil Company of Zimbabwe (NOIC) and the Zimbabwe Revenue Authority (ZIMRA) have been authorised to collect the levy on behalf of ZERA, under specific terms and conditions.

According to the notice, the funds raised from this levy will be directed towards enhancing compliance within the petroleum sector, including enforcing regulations and standards, providing training and development, and procuring tools and research equipment. Any excess funds will be used to improve energy access in rural communities, with a focus on renewable energy projects.

"The collected funds shall be used by ZERA for strengthening the compliance of the petroleum sub-sector to regulations and standards, training and development, procuring tools, research and development. The excess funds shall be used for enhancing access to energy in rural areas, procurement and construction of properties, and the funding of activities to promote renewable energy uptake," read part of the notice.

Market experts noted that the nominal levy is unlikely to cause any significant increase in fuel prices, as its impact on overall costs is minimal.

The initiative aligns with the government's rural industrialisation and modernisation agenda, which seeks to improve the quality of life in rural areas by promoting sustainable energy solutions. In recent months, several rural communities have benefited from solar energy installations as the government continues its shift toward clean and renewable energy sources, reducing reliance on fossil fuels that contribute to environmental degradation.

This latest move is expected to further accelerate the adoption of renewable energy in rural Zimbabwe, providing a sustainable energy source for communities that have long struggled with limited access to electricity.