02.04.2026
The Government is confident that the decision to zero-rate Value Added Tax (VAT) and suspend Excise Duty on imported diesel and petrol for a period of three months will stabilise the petroleum market and ease pressure on fuel prices. The measure is expected to provide immediate relief to consumers and businesses while cushioning the economy from the effects of rising global oil prices.
Government anticipates that this intervention will enhance the affordability and accessibility of fuel, sustain operations across key sectors, and prevent supply disruptions. The policy is also aimed at promoting smooth distribution and discouraging speculative practices such as hoarding, thereby restoring normalcy in the supply chain following recent challenges. More Oil Marketing Companies (OMCs) are expected to come on board and import fuel following the VAT zero rating and Customs Duty suspension.
Am glad to announce that engagements with Oil Marketing Companies (OMCs) are progressing well, with some firms already advancing plans to import additional fuel stocks. These efforts are expected to supplement existing reserves and further strengthen supply security in the coming months.
On behalf of the Ministry of Energy, let me commend the Zambian people for the support and cooperation being rendered to Government during this Emergency period as we navigate various options to stabilize fuel supply.
The current fuel supply disruptions are largely driven by external global factors, particularly developments on the international market, and not domestic constraints.
The Zambian people have once again demonstrated understanding and unity.
We should all understand that the temporary suspension of VAT and Excise Duty underscores Government’s proactive approach to protecting citizens and supporting economic resilience amid global uncertainties.
Despite rising regional fuel prices, Zambia continues to maintain comparatively lower prices, even following the recent adjustments announced by the Energy Regulation Board (ERB) for April 2026.
Government remains committed to closely monitoring the situation and implementing responsive measures to safeguard national interests. Members of the public are urged to remain calm, cooperate with authorities, and adhere to guidance issued during this period as the country navigates the declared petroleum supply emergency.
Issued by:
Hon Makozo Chikote, MP
MINISTER OF ENERGY