BUY Zimbabwe has urged local energy players and authorities to strategically shift national policy toward localising the fuel supply chain, amid rising fuel prices triggered by the Iran-United States/Israel conflict destabilising the global market.
The current crisis was ignited on February 28, when a coalition of US and Israeli forces launched large-scale airstrikes against Iranian military and nuclear infrastructure.
This led to a spike in global oil prices, as Iran is a major producer, with Brent crude jumping to over US$110 per barrel, from US$70, within the first week of this month, now down to US$92.
Locally, this led to a spike in local prices to US$1,77 and US$1,71 per litre of diesel and petrol, respectively, on March 4, from US$1,52 and US$1,56.
“By investing in and prioritising local energy production such as ethanol, which is used to blend with fuel, we will be able to harness our abundant natural resources, reduce imports while creating jobs, and fostering sustainable economic development,” Buy Zimbabwe advocacy and communications officer Elvis Masvaure said in a statement.
“This will directly make a positive impact within the local energy industry.”
However, the high cost build-up of Zimbabwe’s fuel also makes any external shocks to the fuel prices more severe.
The Zimbabwe Energy Regulatory Authority explained that the price hikes reflect the government’s decision to cut some of its levies to shield consumers from steep increases caused by movements in the international fuel markets.
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Without this intervention, the authority explained, diesel would have cost about US$1,90 per litre, and blended petrol roughly US$1,81 per litre.
As the geopolitical tremors from the Middle East ripple across the African continent, Buy Zimbabwe is emphasising that reliance on imported, finished petroleum products leaves the nation’s economy dangerously vulnerable to external price shocks.
Local analysts have argued that by incentivising domestic blending initiatives and revitalising local refinery infrastructure, Zimbabwe can insulate its transport and manufacturing sectors from the volatility of geopolitical tensions such as the US/Israel-Iran standoff.
Economist Malone Gwandu said since the conflict in the Middle East was unpredictable, responsible authorities needed to come up with long-term measures on how to counter the reliance on importing critical commodities.
“The responsible authorities have a duty to implement policies that favour the growth of local energy industry players, such as local blenders, to reduce the import component of fuel,” he said.
Gwandu also said the authorities should make use of natural resources such as lithium and solar energy for the benefit of the local automotive industry.
“The government must invest towards the development of local resources such as lithium and solar energy for use as alternative sources of energy, fostering a reduction of imports and at the same time saving foreign currency for other critical purposes,” he added.
In 2025, the Reserve Bank of Zimbabwe reported that foreign currency payments for fuel rose 18,2% to US$1,86 billion from the prior year.
Hence, experts argue that this bill could be reduced if more ethanol is produced along with the blending ratio.
