Harare, (New Ziana) – The Ministry of Finance, Economic Development, and Investment Promotion has castigated Liquified Petroleum Gas (LPG) operators for failing to lower prices despite the government removing Value Added Tax (VAT) on the commodity, effective January 1 this year.
In a press statement on Friday, Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said operators had undermined the move, intended to provide relief to consumers, by continuing to charge inflated prices.
Prof Ncube announced the decision to scrap VAT on LPG in the 2025 National Budget.
Iin addition to providing relief to households and businesses relying on LPG as a primary energy source, the move was also designed to support the broader government broader agenda of transitioning to greener energy solutions.
On January 7 this year, the Zimbabwe Energy Regulatory Authority (ZERA) issued a public statement outlining the maximum prices LPG operators should charge following the VAT removal.
Despite the clear directive, many operators have continued to sell LPG at pre-VAT removal prices, pocketing the difference and denying consumers the intended benefits.
The failure to comply has drawn sharp criticism from the government, which views the move as a betrayal of public trust and a hindrance to its efforts to make clean energy more accessible and affordable.
“I therefore urge LPG operators to reduce their prices by the extent of the VAT relief as intended. “This will go a long way in giving relief to our consumers and citizens and is also consistent with Government efforts towards greening the economy,” said Prof Ncube.
LPG is a critical energy source for several households, particularly in urban areas where electricity shortages are common.
New Ziana