The Markets Ledger

Zimbabwe H1 fuel consumption rises 14.5% on strong diesel demand

Zimbabwe’s fuel consumption rose by 14.5 percent in the first half of 2026, driven mostly by higher diesel demand.
Fuel sales for the six months reached 1.15 billion litres, up from about one billion litres recorded during the corresponding period last year, according to the latest data from the Zimbabwe Energy Regulatory Authority (Zera).
Diesel accounted for 799.1 million litres of the total, representing a 21.5 percent increase from 657.5 million litres in the first half of 2025.
The sharp rise in diesel demand could signal increased use of trucks, heavy machinery and industrial equipment, particularly in sectors such as mining, agriculture, construction and manufacturing.
Diesel sales posted their strongest annual growth in April, when volumes jumped 37.1 percent to 165.9 million litres. Growth remained above 20 percent in May before easing sharply in June to 0.6 percent, with monthly sales reaching 136.3 million litres.
The slowdown in June suggests that the rapid expansion in diesel-intensive economic activity seen earlier in the year may be losing momentum.
Petrol consumption followed a much weaker growth path, increasing by just 1.1 percent to 347.9 million litres from 344.3 million litres during the same period last year.
Monthly petrol sales fluctuated significantly during the period. Volumes fell 26.8 percent in January and 12.2 percent in April, but recovered strongly in February and June, rising 40.2 percent and 18.8 percent respectively.
The modest overall increase in petrol consumption points to subdued demand from private motorists and households, who continue to face pressure on disposable incomes.
The contrasting performance between diesel and petrol also points to different trends in economic activity. Businesses and productive sectors appear to have driven much of the increase in fuel demand, while household consumption remained comparatively subdued.
Zera regulates the petroleum industry, including licensing, fuel quality standards and price monitoring.
Fuel demand has also been affected by developments in international oil markets.
Following United States and Israeli military strikes on Iran, Zimbabwe faced sharp increases in pump prices because of its exposure to Middle Eastern energy supplies. The country relies on the region for about a third of its energy requirements.
Petrol prices subsequently increased by 43 percent, while diesel prices rose by 35 percent, putting further pressure on motorists and businesses.
The price shock prompted the Government to introduce targeted tax relief measures aimed at cushioning consumers and businesses from the higher cost of fuel.
Despite the sharp rise in pump prices, first-half consumption remained higher than in the comparable period, largely because of the strong increase in diesel demand.
The weaker performance in June, however, will be closely watched as it could indicate whether the strong fuel demand recorded during the opening months of 2026 can be sustained through the second half of the year.