shloboe boe
Sikhulekelani Moyo, mskhulekelani16@gmail.com
FINANCE, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, has condemned liquefied petroleum gas (LPG) dealers for continuing to charge exorbitant prices despite the removal of value added tax (VAT) on the commodity.
Prof Ncube emphasised in his 2025 national budget statement the growing importance of LPG as an alternative energy source in the wake of the region’s electricity supply challenges.
Prolonged load shedding has increased reliance on LPG for cooking and heating, offering a cleaner and more sustainable option compared to traditional fuels like firewood and charcoal, which contribute to deforestation and indoor air pollution.
In a statement yesterday, Prof Ncube said the removal of VAT was meant to give relief to citizens who are using LPG gas as a source of energy.
“The Government removed VAT on LPG gas in the 2025 Budget with effect from 1 January 2025, through Statutory Instrument 195 of 2024,” Prof Ncube explained.
“The intention was to lower the prices of LPG gas by the extent of the VAT that was being charged previously.
“However, the Government has noted with concern that some of the LPG operators have not reduced their prices, thus profiteering from the VAT relief, which was aimed at citizens. This is unethical.”
Early this month, the Zimbabwe Energy Regulatory Authority (Zera) announced that the removal of VAT resulted in LPG prices dropping by approximately 13 percent.
The new prices are US$1,61 per kilogramme, down from US$1,86 per kilogramme in December. In local currency, the adjustment is ZWG41,63 per kilogramme, down from ZWG47,51 per kilogramme. These new prices have, however, not been adhered to.
“I, therefore, urge LPG operators to reduce their prices by the extent of the VAT relief as intended. This will go a long way in giving relief to our consumers and citizens and is also consistent with the Government’s efforts towards greening the economy,” said Prof Ncube.
The demand for LPG continues to grow in Zimbabwe, with the country consuming nearly 400 million kilogrammes of LPG between 2015 and March 2024, primarily imported from regional producers. —@SikhulekelaniM1
