⛽ 1. Base Cost (International Oil Price)

This is the starting point:

• Price of refined fuel (petrol/diesel) on global markets
• Linked to crude oil prices affected by Middle East tensions

👉 Example logic:
If global oil rises → import cost rises

✔ This part is legitimate and unavoidable

🚢 2. Freight & Insurance (Landing Cost)

Fuel must be transported to Zimbabwe:

• Shipping (usually via Mozambique, e.g. Beira pipeline)
• Insurance (especially higher during war risk periods)

👉 War in the Middle East can slightly increase this due to risk premiums

🛢️ 3. Pipeline & Storage Costs

• Moving fuel inland (pipeline fees, storage depots)
• Handling and logistics inside the country

✔ These costs are relatively stable but still added on

💱 4. Exchange Rate Impact

• Fuel is bought in USD
• Local pricing may reflect exchange rate distortions or risks

👉 If currency instability exists → prices go higher than expected

🏛️ 5. Taxes & Government Levies (KEY ISSUE)

This is where most controversy lies. Zimbabwe fuel includes:

• Excise duty
• Carbon tax
• Strategic reserve levy
• Road levy
• Other regulatory fees

👉 These can make up a large portion of the final price

❗ Critical point:

• When global prices rise, these taxes are often NOT reduced
• So consumers absorb both global increase + full tax load

🏪 6. Dealer Margin (Fuel Stations)

• Profit margin for fuel companies and service stations
• Usually fixed or regulated

✔ Not the biggest factor, but still contributes

📊 Putting it all together

Formula:

Pump Price =

Import cost + freight + storage + exchange rate buffer + taxes + dealer margin

🔍 Why people say government is “taking advantage”

1. Taxes don’t adjust downward

Even when:

• Oil prices fluctuate
• Economic pressure increases

👉 Government revenue from fuel stays high

2. War impact is only partial

Example:

• Oil price might increase by 10–20%
• But pump price may feel like it increased more

👉 Difference often comes from:

• Taxes
• Currency issues
• Internal inefficiencies

3. Lack of transparency

Pricing isn’t always broken down publicly in detail.

👉 So people suspect:

“The war is being used as a cover.”

🧠 Simple analogy

Think of it like this:

• Global oil price = cost of ingredients
• Government taxes = extra charges added on top

Even if ingredients go up a bit,
👉 the final bill feels much higher because of the add-ons.

⚖️ Bottom line

• ✔ War in the Middle East does increase fuel costs
• ❗ But in Zimbabwe, taxes and pricing structure amplify the impact
• 👉 That’s why many believe the situation is being leveraged rather than just managed