HARARE – Presidential spokesperson George Charamba has defended Zimbabwe’s latest fuel price adjustment, describing it as both “shocking and understandable” in light of global economic pressures, while cautioning against simplistic calls to reduce fuel taxes.
Reacting to the recent increase announced by the Zimbabwe Energy Regulatory Authority (ZERA), Charamba acknowledged the immediate impact on citizens, noting that higher fuel prices inevitably drive inflation in an economy where wages have largely remained static.
“Fuel is the most inflationary commodity,” Charamba said, explaining that increases at the pump quickly cascade through transport costs and the broader economy.
However, he emphasised that the adjustment must be viewed within the context of global developments, particularly escalating tensions in the Middle East involving the United States, Israel and Iran, which have disrupted energy markets worldwide.
“The necessity of the adjustment is not in dispute,” he said. “It arises from an external shock against which Zimbabwe has very little control.”
Charamba noted that public frustration is understandable, particularly given the heavy tax component embedded in Zimbabwe’s fuel pricing structure. These levies, he said, affect all citizens and contribute to pump prices that are higher than those in some neighbouring countries.
The presidential spokesperson warned, however, that reducing fuel-based taxes would have significant consequences for government revenue and service delivery.
“Any relief granted through lower fuel taxes must be weighed against the State’s obligation to provide public goods,” Charamba said. “What the citizen saves at the pump may be lost through reduced access to essential services such as healthcare.”
He pointed to recent Cabinet measures to cut or reduce various fees in an effort to ease the cost of doing business, noting that such steps, while necessary, have already narrowed the government’s revenue base.
“This creates a difficult balancing act,” Charamba said, adding that the government must maintain its ability to fund key sectors, particularly as efforts are underway to revitalise the country’s health system.
Looking beyond the immediate crisis, Charamba called for greater focus on long-term solutions to reduce Zimbabwe’s vulnerability to external shocks.
He highlighted the need to accelerate strategic projects such as the Muzarabani gas initiative, invest in alternative energy sources, and promote a transition to electric vehicles, alongside better utilisation of the country’s coal resources.
“The real challenge is structural,” he said. “Our economy remains overly exposed to external developments. Addressing that vulnerability must be our priority.”
Charamba urged policymakers and the public alike to maintain a broader perspective, stressing that while short-term measures may provide relief, sustainable economic resilience will depend on deeper structural reforms.