HARARE – Fuel companies in Zimbabwe have begun accepting payments in local currency for bulk petroleum supplies, as distributors seek to generate Zimbabwe Gold (ZiG) to meet statutory tax obligations in an economy where most fuel transactions remain denominated in US dollars.
Reserve Bank of Zimbabwe Deputy Governor Innocent Matshe disclosed the development during the 2027 Pre-Budget Seminar in Bulawayo, saying some fuel distributors had introduced ZiG payments for wholesale customers while retaining US dollar pricing at service stations.
Matshe said the arrangement was driven partly by the need to settle Quarterly Payment Date tax obligations in local currency, despite fuel companies receiving much of their revenue in foreign currency.
The development provides an additional source of demand for ZiG, although its immediate impact on everyday currency use remains limited because retail motorists are largely unable to access the same payment option.
The announcement comes as policymakers consider ways to expand the use of the local currency while managing the cost of fuel, a major input for agriculture, mining, manufacturing and transport.
Lincoln Dhliwayo, chairperson of Parliament’s Budget, Finance and Investment Promotion Committee, said a proposal had been made for the Government to continue subsidising fuel prices to keep them below US$2 per litre.
The proposal is intended to cushion businesses and consumers against high operating costs, but no final decision has been announced on the continuation, structure or financing of the subsidies.
Fuel affordability remains a significant issue for businesses reliant on diesel and petrol for production, machinery and distribution. Any extension of subsidies would therefore need to be weighed against the demands on the national budget.
The emergence of wholesale fuel sales in ZiG signals a gradual expansion of local-currency transactions, but wider adoption will depend on whether distributors extend the payment option to retail customers and whether the currency becomes more practical for everyday commercial activity.
