Zimbabwe continues to rank as the most expensive fuel market in the region despite serving as a key transit corridor for petroleum products destined for landlocked Zambia, according to recent pricing and logistics data for April 2026.
Fuel imported through South Africa enters Zimbabwe via Beitbridge Border Post and moves through key logistics corridors including Harare’s Msasa fuel depots, Karoi, Makuti and the Chirundu border post before continuing into Zambia’s Copperbelt and Lusaka.
Despite this physical supply chain role, petrol and diesel prices in Zimbabwe remain significantly higher than in neighbouring markets.
Following the latest adjustment by the Zimbabwe Energy Regulatory Authority effective 18 April 2026, petrol was reduced to US$2.08 per litre and diesel to US$2.09 per litre. However, these prices still place Zimbabwe at the top of the regional fuel cost curve.
By comparison, petrol in Zambia retails at about US$1.42 per litre after tax reductions introduced in March 2026, while diesel averages US$1.56. South Africa, the main source of refined fuel for the region, remains lower at about US$1.42 per litre for diesel.
This creates a petrol price gap of around US$0.66 per litre between Zimbabwe and Zambia, and a diesel gap of approximately US$0.53, despite Zimbabwe physically facilitating much of the fuel transit into Zambia.
Analysts say the disparity is largely driven not by supply chain costs but by Zimbabwe’s layered fuel tax and levy structure, which includes multiple statutory charges imposed at pump level.
The 18 April reduction followed a sharp earlier spike in early April, when ZERA increased prices due to global oil market disruptions linked to Middle East geopolitical tensions affecting supply routes through the Strait of Hormuz.
At the peak, diesel was projected to reach US$2.65 per litre without intervention.
The subsequent reduction was partly achieved through an expansion of ethanol blending under the government’s fuel policy shift from E5 to E20. Locally produced ethanol from entities such as Green Fuel was blended into petrol, reducing import dependence and lowering the final pump price.
However, diesel – which does not benefit from ethanol blending – saw only marginal reductions, highlighting the limits of the intervention.
Economists note that while supply costs across the region are broadly similar at import level, Zimbabwe’s final pump price is elevated by cumulative levies, including fuel taxes, road maintenance charges and VAT.
Neighbouring countries such as Zambia and Namibia have recently reduced pump prices mainly through tax cuts, while Zimbabwe’s adjustments have relied more on blending substitution rather than direct tax relief.
As a result, even after the April price correction, Zimbabwe remains structurally the most expensive fuel market in Southern Africa.
The high fuel cost is feeding into broader inflationary pressures, particularly in transport and logistics, which remain among the biggest contributors to consumer price increases.
Heavy transport operators report diesel costs in Zimbabwe are nearly 50% higher than in South Africa, significantly affecting freight pricing across regional supply chains.
Agriculture has also been affected, with diesel-dependent irrigation and mechanised farming facing higher operating costs compared to neighbouring producers, potentially weakening Zimbabwe’s competitiveness in regional food markets.
Longer-term solutions are being explored through regional infrastructure projects, including a planned fuel storage and distribution hub at Walvis Bay in Namibia. The facility, backed by Afreximbank and the Dangote Group, is expected to streamline fuel imports for Zimbabwe, Zambia and Botswana, reducing delivery times and logistics costs.
However, analysts caution that while such projects may reduce base supply costs, Zimbabwe’s final retail prices will still depend heavily on domestic tax policy.
Without changes to the current levy structure, experts say Zimbabwe is likely to remain the region’s most expensive fuel market even if supply chain efficiencies improve.
For now, the April 2026 adjustments have provided temporary relief, but the underlying pricing structure remains largely unchanged.