mbulelo smpofu
Sikhulekelani Moyo, [email protected]
THE Zimbabwe Energy Regulatory Authority (Zera) has announced a reduction in liquefied petroleum gas (LPG) prices following the exemption of Value Added Tax (VAT) on the product, a measure introduced in the 2025 National Budget.
The Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, emphasised the growing importance of LPG as an alternative energy source in light 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.
To make LPG more affordable, VAT on the product has been scrapped, effective January 1, 2025.
In a notice dated December 31, 2024, Zera announced that the removal of VAT has 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.
“Stakeholders are advised that the LPG prices for December 2024 were calculated in accordance with the Petroleum (Liquid Petroleum Gas Pricing) Regulations, 2021 (Statutory Instrument 90).
“However, following the removal of Value-Added Tax (VAT), the prices have been reduced, effective 1 January 2025, as follows: US$1,61/kg or ZWG41,63/kg,” reads an update from Zera.
Retailers are required to prominently display the updated prices at their outlets, although they are permitted to sell LPG at lower prices depending on their trading advantages.
“Operators are advised to display the prices at their retail outlets at a prominent place in clearly legible letters. Please note that it is permissible to sell LPG at prices below the prescribed prices depending on one’s trading advantages,” said Zera.
The demand for LPG continues to grow in Zimbabwe as more households and businesses adopt it as an alternative to traditional energy sources.
Between 2015 and March 2024, the country consumed nearly 400 million kilogrammes of LPG, primarily imported from regional producers.
Zera has been at the forefront of promoting modern energy solutions, including renewable energy projects such as net metering, mini-grids, and independent power producers (IPPs).
These initiatives aim to enhance access to sustainable energy by 2030, in line with global energy goals.
By exempting LPG from VAT, the Government seeks to make the cleaner energy source more accessible to households, while reducing environmental degradation caused by the use of firewood and charcoal.
This move aligns with Zimbabwe’s broader energy strategy, which prioritises renewable and sustainable energy solutions to address the country’s energy challenges. — @SikhulekelaniM1
Siphakeme .Mnindwa
