Staff Reporter

The Ministry of Finance, Economic Development, and Investment Promotion has reiterated its call for Liquefied Petroleum Gas (LPG) suppliers to reduce prices, following the removal of Value Added Tax (VAT) on LPG, effective January 1, 2025.

The VAT exemption, introduced through Statutory Instrument 195 of 2024, was designed to lower the cost of LPG for households that depend on it as a primary energy source. However, the Government has expressed concern that some LPG operators have not adjusted their prices, effectively denying consumers the intended relief.

To address this, the Zimbabwe Energy Regulatory Authority (ZERA) issued a directive on January 7, 2025, outlining maximum LPG prices that suppliers should adhere to. Despite this intervention, some operators have not complied, prompting the Government to reinforce its position.

In a press statement, Minister of Finance, Professor Mthuli Ncube, has urged LPG suppliers to immediately lower prices in line with the VAT reduction, emphasising that compliance is necessary to ensure that consumers benefit from lower energy costs.

“The removal of VAT was specifically aimed at making LPG more affordable for citizens. It is unethical for suppliers to withhold this relief and continue charging inflated prices. LPG operators must pass on the VAT reduction to consumers as intended,” said Prof. Ncube.

Government has pledged to closely monitor LPG pricing and ensure that suppliers comply with the directive.

Authorities argue that failure to reduce prices not only undermines consumer benefits but also goes against the Government’s broader economic stabilisation efforts.

The VAT exemption is also part of Zimbabwe’s strategy to promote cleaner energy solutions, supporting the transition toward a greener economy.

By enforcing compliance, Government aims to enhance affordability, reduce energy costs for households, and drive sustainable economic growth.