The Government’s decision to suspend fuel taxes is expected to bring relief to businesses and consumers, with authorities projecting improved affordability and stability in the petroleum sector.
In a statement, Minister of Energy Makozo Chikote says the zero-rating of Value Added Tax and suspension of Excise Duty on imported petrol and diesel for three months will help reduce the cost of fuel and ease pressure on the cost of living.
Mr. Chikote explains that lower fuel costs are likely to benefit key sectors such as transport, agriculture, and manufacturing, which heavily depend on diesel, thereby helping to stabilise prices of goods and services.
He adds that the measure is also expected to improve access to fuel, support uninterrupted operations across industries, and prevent supply disruptions that have recently affected the market.
The Minister notes that the policy will further encourage Oil Marketing Companies to import more fuel, increasing supply and strengthening national reserves in the coming months.
Mr. Chikote has also indicated that the intervention will promote fair distribution and discourage hoarding, helping restore normal supply chains.
Meanwhile, Government maintains that the current fuel supply challenges are largely driven by global market dynamics, not domestic factors, and has urged the public to remain calm as measures are implemented.
By Rachel Mumba
