•  Zimbabwe ethanol price doubles global average, raises fuel costs

• Green Fuel monopoly limits competition in ethanol supply

• Transport index hits record, fueling broader inflation rise

Ethanol used in Zimbabwe's mandatory gasoline blend is sold for about $1.10 per liter, nearly double the international price of $0.50 to $0.70 per liter, according to data from Equity Axis. This price disparity inflates the final cost of fuel at the pump.

As of September 1, 2025, the Zimbabwe Energy Regulatory Authority (ZERA) set the price of gasoline at $1.56 per liter and diesel at $1.55 per liter. In comparison, prices remain significantly lower in some neighboring countries: about $1.23 per liter in Zambia and $1.21 per liter in South Africa, according to GlobalPetrolPrices.

The high price is attributed to Zimbabwe's mandatory gasoline-ethanol blending system. This policy, introduced to reduce reliance on fuel imports, relies on Green Fuel as the dominant supplier of the key component. The company, which has been granted "National Project" status by the Zimbabwean government, provides almost all the country's ethanol, thereby limiting competition. While other companies like Triangle Limited have production capacity, their volumes are marginal compared to Green Fuel's.

This situation has impacted transportation costs, which are measured in the consumer price index. The index rose to a record high of 192.51 points in August 2025, up from 189.72 points in July. According to Trading Economics, transportation accounts for about 8% of the national inflation basket, highlighting the critical role of fuel in overall price changes.

Abdel-Latif Boureima