Zara holds while SADC peers breach historic price records

Published: 07 May 2026

Zimbabwe has kept petrol and diesel prices unchanged for the period to 15 May 2026, even as neighbouring South Africa implemented some of its steepest monthly fuel increases in recent years following global supply disruptions linked to the closure of the Strait of Hormuz and heightened geopolitical tensions.

According to the latest pricing review by the Zimbabwe Energy Regulatory Authority, petrol (E20 blend) remains at USD 2.08 per litre and diesel at USD 2.09 per litre, with local currency equivalents held at ZWG 52.86 and ZWG 53.15 respectively. The regulator's announcement effectively signals a short-term price freeze in a period of heightened global oil volatility.

Across the border, the South Africa Department of Mineral and Petroleum Resources confirmed petrol price increases of R3.27 per litre and diesel increases of R5.27 per litre effective 6 May 2026. The adjustments represent the second consecutive month of sharp fuel hikes, driven largely by international crude oil pressures and domestic slate recovery costs.

The contrast between Zimbabwe's static pricing and South Africa's sharp upward adjustment initially suggests a divergence in consumer outcomes. However, regional comparisons show a more complex picture.

South Africa's 95 Unleaded petrol now averages about USD 1.60 per litre in Gauteng, while diesel has climbed to roughly USD 2.04 per litre at the pump. This places South African diesel only marginally below Zimbabwe's USD 2.09 per litre retail price, significantly narrowing a gap that previously exceeded 30 cents per litre.

In Zambia, the Energy Regulation Board maintained petrol at approximately USD 1.42 per litre and diesel at USD 1.83 per litre following partial fiscal cushioning measures, while Botswana's petrol prices remain around USD 1.52 per litre.

This places Zimbabwe among the most expensive fuel markets in the region, second only to Malawi on the African continent in recent comparative rankings.

While Zimbabwe's flat pricing suggests short-term stability, analysts note that the country remains heavily exposed to imported fuel cost structures, which are influenced by regional refinery pricing and international crude benchmarks.

Unlike South Africa's formula-based monthly adjustments or Zambia's direct fiscal interventions, Zimbabwe's pricing cycle operates on a shorter administrative review window, typically around two weeks, allowing temporary price freezes that may not immediately reflect underlying global cost movements.

With Brent crude trading above the USD 100 per barrel mark during the latest adjustment cycle, regional fuel import costs remain under sustained pressure. South Africa's pricing formula has already absorbed both higher crude prices and a widening slate deficit, while Zambia has temporarily suspended VAT and excise duties to cushion consumers.

The narrowing price gap between Zimbabwe and South Africa is largely attributed not to domestic efficiency gains, but to external shocks pushing South African prices upward. As a result, Zimbabwe's relative position in regional fuel pricing has improved only in statistical terms, not in affordability terms.

If global crude oil prices remain elevated and Strait of Hormuz-related risks persist, further increases are expected across the region in June pricing cycles. Zimbabwe's next review on 15 May will be closely watched for signs of delayed pass-through effects from regional supply chains.

For now, Zimbabwe's decision to hold prices steady offers short-term relief, but the broader regional trajectory suggests continued upward pressure across SADC fuel markets, driven by external supply disruptions rather than domestic policy shifts.
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