The Government of Zimbabwe has raised the Strategic Fuel Reserve Levy on petrol and diesel to enhance the country’s energy security, even as retail prices remain unchanged for May.

Announced through Statutory Instrument 50 of 2025, Finance Minister Professor Mthuli Ncube confirmed the levy increase effective 9 May. The levy on petrol has risen from US$0.1770 to US$0.2470 per litre — a 28.3% increase — while diesel has increased from US$0.1570 to US$0.1870, up 19.1%.

The Strategic Reserve Levy funds emergency fuel stockpiles, helping safeguard national supply during disruptions caused by geopolitical conflicts or global supply chain challenges.

In a statement, Treasury said the move aligns Zimbabwe’s policies with international best practices and supports a long-term strategy to strengthen energy resilience.

Economist Dr Prosper Chitambara welcomed the forward-looking approach but warned of the risk to consumers. “Fuel is essential to the economy. Strengthening reserves is prudent, but the overall tax burden remains high and could fuel inflation,” he said.

Despite the levy increase, the Zimbabwe Energy Regulatory Authority (ZERA) confirmed fuel prices would remain unchanged in May. Petrol stays at US$1.61 per litre and diesel at US$1.52, following April’s slight diesel price drop of 1.93%.

The Brent crude oil benchmark showed minor fluctuations in April, closing the month at US$68.21 per barrel. Market volatility was largely driven by tensions within OPEC+ and ongoing global production uncertainties.

Energy economist Chipo Moyo supported the decision to maintain prices. “While price cuts are welcome, predictability in fuel costs helps businesses manage operations and avoid financial shocks,” she said.

Local businesses and consumers have also welcomed the move. Harare accountant Kelvin Mombe said stable fuel prices offer some relief amid rising inflation. Eddie Saunyama, a construction entrepreneur, added that stability helps small businesses budget more effectively.

Analysts say Zimbabwe’s strategy reflects a careful balance between long-term energy preparedness and short-term economic protection. As global fuel markets remain uncertain, the government appears committed to shielding the economy without further burdening consumers.