ZNCC Matabeleland regional manager Mduduzi Ncube said the government should review the cumulative burden of fuel taxes and assess how reducing them could ease pressure on businesses and consumers.
He was speaking at the Zimbabwe Energy Regulatory Authority (ZERA) 2026 pre-strategy review, stakeholder consultation and feedback workshop in Bulawayo on Thursday.
Ncube said affordable and reliable energy was essential to key economic sectors, including manufacturing, mining, agriculture, tourism and transport.
“Reliable, affordable energy remains a critical input into manufacturing, mining, agriculture, tourism, services and the wider economy,” he said.
He said businesses continued to face high energy costs and uncertainty when planning investments, despite improvements in electricity supply and the growth of solar power and liquefied petroleum gas markets.
While acknowledging ZERA’s efforts to improve transparency in fuel pricing, Ncube said publishing price breakdowns alone would not address the underlying cost pressures.
“ZNCC acknowledges that ZERA publishes the fuel price build-up. The policy question is therefore not simply disclosure, but the structure and cumulative effect of the taxes and levies included in the final price, and how quickly changes in costs are reflected at the pump,” he said.
The chamber said its estimates suggested that taxes and levies accounted for a substantial proportion of pump prices. However, it acknowledged that regional comparisons needed to use consistent dates, fuel grades, tax definitions and currency assumptions.
“As a starting proposal for fiscal assessment, ZNCC recommends considering a ceiling of US$0.40 per litre on combined taxes and levies,” Ncube said.
He said the proposal should be assessed against its potential impact on government revenue and the purposes of individual levies, while identifying ways to protect essential public funding and reduce costs for productive sectors.
ZNCC also called for clarification of fuel-tax measures already introduced by the government and an assessment of their impact on pump prices.
Call for fuel price stabilisation mechanism
Ncube said fluctuations in fuel prices exposed businesses to sudden increases in production, freight, passenger transport and distribution costs.
“International price movements, geopolitical disruptions, exchange-rate changes and domestic taxes can quickly feed into the cost of doing business,” he said.
ZNCC proposed a transparent fuel-price smoothing mechanism to moderate sharp increases caused by exceptional movements in international markets.
Under the proposal, a rolling average of eligible international fuel prices and procurement costs would be used to reduce abrupt price changes, while ensuring that falls in underlying costs were passed on to consumers.
Ncube said any stabilisation fund or reserve should operate under clear rules governing its financing, withdrawals and replenishment, with independent oversight and public reporting.
“The mechanism should not conceal costs or create unfunded fiscal liabilities; its purpose should be to make price adjustments more predictable and reduce avoidable volatility for firms and households,” he said.
The chamber also urged ZERA to communicate the basis, effective dates and implications of fuel price adjustments clearly. It called on the regulator to monitor whether fuel retailers could sell fuel below the prescribed maximum prices.
Businesses seek clearer energy regulations
Beyond fuel pricing, ZNCC called for a more predictable regulatory environment to encourage investment in electricity generation, particularly renewable energy and on-site solar installations.
Ncube said investors needed clear licensing procedures, transparent procurement processes and commercially viable power-purchase arrangements to make energy projects financially sustainable.
“Investors in generation, including renewable energy, need transparent and predictable licensing, procurement and power-purchase arrangements,” he said.
ZNCC proposed that ZERA publish a consolidated guide outlining application requirements, fees, decision timelines, supporting documents and the grounds for approving or rejecting applications.
It also called for clear guidance for commercial and industrial businesses investing in their own solar systems, including when registration, notification or a licence was required.
“The regulatory framework should facilitate lawful investment in reliable self-generation without imposing disproportionate compliance costs on productive firms,” Ncube said.
He also called for clarity on the technical, commercial and settlement arrangements governing businesses seeking to sell surplus electricity to the national grid or other users.
ZNCC welcomed reductions in petroleum licensing fees introduced through Statutory Instrument 124 of 2026 but urged ZERA to publish details of the previous and revised fees, the affected licence categories, implementation dates and expected benefits.
The regulations, published in July 2026, amended petroleum licensing fees, including charges for businesses involved in procurement and retail. The chamber said ZERA should monitor whether the reductions were lowering operating costs and improving market efficiency.
ZNCC calls for regulatory performance scorecard
Ncube acknowledged progress in the energy sector, including the publication of fuel price breakdowns and maximum prices, consumer education on energy safety and efficiency, and efforts to strengthen technical standards and compliance.
He also pointed to the reported reduction of electricity licensing turnaround times to 90 days or less, alongside the publication of ZERA’s 2026–2030 Strategic Plan and 2025 Annual Report.
The commissioning of Hwange Units 7 and 8 in August 2023 added about 600MW of generation capacity. However, installed capacity does not necessarily translate into an equivalent amount of electricity being consistently available to consumers.
Ncube said the next step was to establish whether developments in the energy sector were delivering measurable benefits for businesses and households.
“The next step is to consolidate these gains and measure their impact on businesses and consumers,” he said.
ZNCC called on ZERA to report regularly on licensing turnaround times, the impact of fee reductions, enforcement outcomes, consumer complaints, energy-safety awareness and progress against its strategic plan.
The chamber also proposed an annual regulatory performance scorecard to help stakeholders assess whether commitments made by the regulator were producing measurable results.
To strengthen engagement between businesses and the regulator, Ncube said ZNCC wanted a structured dialogue platform with designated focal persons and an action tracker setting out agreed interventions, responsible institutions and completion deadlines.
He said the chamber was prepared to provide evidence from its members across manufacturing, transport, agriculture, mining, retail and services to support practical solutions.
“ZNCC stands ready to contribute constructively to this shared agenda,” he said.
He added that predictable regulation, proportionate costs, effective enforcement and open engagement could help attract investment, strengthen productivity and improve Zimbabwe’s competitiveness.