Panic, greed or both?

11 03 2026
The bad news on a local filling station prices board

On Wednesday morning the previous day’s rumour of fuel price increase was proven correct. Diesel price had gone up from $1.53 per litre to $1.77. Please note that is US dollars not the local ZWG dollar which despite being an official and rate-controlled currency nobody wants it, most certainly not the fuel stations.

The reason given for the price increase is the ongoing war in Iran. I suspect that it’s a convenient excuse to bleed the Zimbabwean public of yet more money. Yes, the increase in crude oil price is going to cause a knock-on effect to the pump prices but nearly 16%? What does the government think the knock on to cost of living is going to be? Do they care? Will it come down if or when the fuel prices are reduced? Not a chance!

Being a landlocked country all imports of consequence come in by road or rail. A telling exception is the fuel pipeline from the Mozambique port of Beira to Mutare, a city on the eastern border of Zimbabwe, which accounts for some 90% of fuel imports. This means that oil price increases are going to have a minimal effect on pump costs. This doesn’t seem to have been incorporated into the ZERA (Zimbabwe Energy Regulatory Authority) calculation of how the maximum allowable fuel price arrived at. ZERA is the government body that regulates maximum fuel prices – I am not sure what else it does if anything.

The ZERA attempt at legitimizing the fuel price increase falls short of convincing

More tellingly there is no indication of how much the source price has changed so it is effectively meaningless. The government has lost no time in telling us just how lucky we have been that it didn’t increase more (last paragraph in italics below):

The petroleum prices are with immediate effect from 4 March 2026 for the next two weeks. In the meantime, ZERA will be closely monitoring the market developments to ensure that there is adequate supply in the market.

The above prices are as a result of Government reducing some of its charges to cushion the consumers from astronomical increases that have happened from changes in the international market.

Without Government cushioning, the actual prices would have been US$1.90/litre for diesel and US$1.81/litre for blend.”

This is from a government that has imposed taxes on bank transfers of 2% (some are exempt such as pensions), 2% tax on cash withdrawals from banks and a VAT of 15.5% that has just gone up from 15%. Income is taxed starting at $100 per month. Foreign currency transactions by debit card now attract a 15% tax. This is a government desperate for cash.

The shortage of cash is evident in the public sector. The road from Bulawayo to Victoria Falls is nearly impassable in places. There are lots of others. Talking to a friend who lives in the eastern highlands area of Nyanga she tells me that it takes her an hour to go 7km along a road that became impassable in January due to heavy rains and other stuck vehicles. Roads in our suburb of Mount Pleasant can require a good deal of patience to negotiate and the problem is widespread in Harare. Power outages and poor voltage are endemic and municipal water is erratic and at best a trickle (ours goes into the swimming pool for storage). What was once the pristine central business district of Harare is now the proverbial dog’s breakfast of rubbish, potholes, vendors and a bad smell to boot.

The tax department works! It’s had a complete makeover in the last year or so and nearly everything is doable online. That’s including the notorious QPDs (Quarterly Payment Due) whereby one has to estimate the company profit or loss four times a year with penalties enforced for being inaccurate. Yes, you got it – taxed in advance!

Businesses eligible to charge VAT have to have a computerised point-of-sale that is linked to the tax department’s computer system and every invoice or cash sale has a QR code on it. Scan the QR code and you can see a representation of the invoice. Try it on the example. I have to admit that I’m impressed.

A typical invoice from a VAT registered company

So when the government hikes the fuel price by nearly 16% and tells us that it could have been more I am sceptical (I am already cynical).

Postscript: In the time taken to write this blog fuel pump prices have rocketed the world over. The Zimbabwe government might just have to rescind its decision to “cushion” price increases. So far there haven’t been reports of fuel shortages but the bulk diesel price on the sign pictured is now zero – none to be had.





It’s all in the picture

15 01 2019

Sniffing around after the rain – there’s a longer story hiding here though.

This picture is not as boring as it might seem at first. There’s a lot of good intelligence to be gleaned from it.

The swimming pool

It’s overflowing – the result of at least 56mm of rain over lunchtime today and a failure to take the overflow pipes off the gutters that feed the rain from the roof into the pool. We need to collect the water off the roof as the borehole is not fantastically prolific – it has been tested at 900 litres/hr which is OK for domestic purposes but not enough to keep a garden attractive and a pool topped up. So the lawn, such as it is, is seasonal and only really gets growing in the rains.

The pool was most certainly not a priority when we were looking for a house to buy just over two years ago. Harare has a mellow climate; not too hot and never really cold though European friends do find the Zimbabwe winter cold as the houses are not geared for heating. The winter only lasts about two months so what’s the point? Winter is also our dry season and the skies are usually clear so it’s easy and pleasant to sit in the sun. Summers are also not very hot. This November it only got to 33° C on a few occasions and while it can be humid it’s seldom humid and hot. Pools are also expensive to maintain especially as all the chemicals are imported and Zimbabweans are famous for price gouging – but more of that later.

So we got a pool with the house, like it or not. I like it – I used to be a good swimmer until the medical fraternity botched two neck operations and I lost a lot of shoulder strength as a result. I still get in the pool when I can but serious swimming is in the past now. I’ve read that getting old is about giving up the things one likes doing – I guess it comes to us all at some stage. The pool also leaks so needs topping up often and being in the agricultural business I could buy the piping through the company, a perk of the work. Yes, I have tried to find the leak and the entire pool piping system has been dug up on several occasions to little avail. The pool is old, built (or should that be dug?) in the 1960s, when the preferred method was to dig a hole and line it with 20cm of reinforced concrete. No doubt there is a tiny crack somewhere which is nearly impossible to find. It also needs painting but that would require complete draining and a lot of confidence in the weather forecasters getting their predictions right for a good rainy season as the borehole won’t handle that volume of water – about 70m³ which is big for a domestic pool. I know the age of the pool because a friend used to come swimming here as a youngster and he tells me that his father and uncle built the house.

The rains this season (it runs from mid-November to mid-April or so) have been erratic and very patchy. That’s fairly typical for an el Niño year which this is. The first rains in this area were about a week late which is significant if you are planting a rain-dependent maize crop. There have been week-long dry spells since and what rain that has fallen has been very localized so this storm was welcome though the pool filter was not in danger of sucking air. We also collect the waste water from the back-washing of the filter and the domestic washing machine and that is used on the garden.

When we moved into the house I bought a small well pump for the purpose but 10 days ago it just stopped working for no apparent reason. It’s been left at the supplier’s workshop where I was told “It’s not expensive so it might not be worth fixing”. They didn’t have that model in stock so I inquired the price of a slightly smaller one and was told $640 (local currency) or US140 cash. Cleaning up my desk on the weekend I found the original invoice from two years ago when all we were using was US dollars – $96. Thanks for the profiteering DripTech.

The grass

Yes it hasn’t been cut for some time. The lawnmower has been making a LOT of noise recently on being started so rather than deal with a permanently dead (I know it’s a split infinitive) mower it was shipped off to the local repair shop to join the queue. Yes, we queue for everything these days. The message came back this past Friday that yes, it is repairable and would be $200 local. We gulped and then decided that it was a lot cheaper than a new mower (around $1,000 at the local hardware store) so gave the go-ahead. This morning Maianne phoned the workshop to be told that they couldn’t source the spares as it was too risky to venture into town with the current disturbances.

At midnight on Sunday fuel prices more than doubled and the president, Emmerson Mnangagwa, flew out to Russia and the far east with begging bowl in hand.  The trade union movement, ZCTU, and opposition politicians immediately called for a shutdown for three days this week to protest the nearly impossible cost of people getting to work and violent protest has ensued. Social media has reported numerous incidents of shops being looted, vehicles burnt and an unconfirmed video of a police station in flames. Mainstream media has reported that people have been shot but numbers have not been confirmed.  My foreman tells me that he’s heard of police and army personnel also threatening shops that were open and forcing them to close. Messages have been doing the rounds of WhatsApp strongly suggesting that all businesses, public transport and schools close for the time being. The language suggests that they are coming from the ZCTU but no-one is claiming ownership at this stage (it’s Tuesday as I write this). Mnangagwa has been seen getting off a privately chartered jet in Moscow which cost some US$60,000 per hour. We are talking real money here.

WhatsApp, Facebook and Twitter have been blocked but are easily circumvented with a VPN (Virtual Private Network). Curiously, while watching YouTube late last night, I received two automated phone calls – one from a private number and the other from a number I didn’t recognise – telling me that my access code to Twitter was a given six digit number. At the time I thought it was a hack and quickly put my phone onto flight mode. Maybe it was a way of bypassing the block. I’m not sure I’ll ever know now but I do know the grass is going to be uncut for a while longer.

Twitter block in place