You can look forward to cheaper petrol and diesel from today with the government on Monday announcing its decision to reduce excise duty on the two petroleum products. The reduction in the duty will have a direct impact on the prices of petrol and diesel, takes effect today.
In a statement, Finance and Economic Planning permanent secretary Willard Manungo said the reduction in excise duty was with immediate effect.
“The reduction in excise duty will have the impact of reducing fuel prices. This will also have the effect of reducing the impact of fuel cost in the economy’s overall production cost structures across all sectors,” Manungo said.
Duty on leaded petrol had gone down from $0,45 per litre to $0,385 per litre, with diesel and paraffin duty now pegged at $0,33 per litre down from $0,40 per litre. There is no duty on jet A1.
Pump gate prices of petrol and diesel, which are revised daily in Zimbabwe, are linked to international crude price movements. A cut in excise duty would proportionately reduce oil companies’ tax outgo, helping to keep retail prices from rising for retail consumers.
The government, which had raised duties three years ago to take away gains arising from plunging global oil prices, has been criticised for not cutting excise duty despite a sustained rise in fuel prices since early September.