By Ennie Kishiki Mutepuka.

The Zambian government has announced a temporary suspension of excise duty and zero-rating of Value Added Tax (VAT) on petrol and diesel, effective from April 1 to June 2026. 

This decision follows a special Cabinet meeting convened by President Hakainde Hichilema at State House, where the current fuel supply situation was declared an emergency.

Chief Government Spokesperson Cornelius Mweetwa explained that the move is a response to disruptions in global oil supply chains, largely triggered by ongoing tensions in the Middle East. 

These developments have led to increased international fuel prices, putting pressure on domestic pump prices. The temporary tax relief measures aim to cushion households, businesses, and key productive sectors from escalating fuel costs.

The government is taking proactive steps to mitigate the impact of rising fuel prices on the economy. 

By suspending excise duty and zero-rating VAT, the authorities hope to reduce the financial burden on citizens and businesses. 

This decision demonstrates the government's commitment to protecting its citizens from external economic shocks.

The fuel supply situation in Zambia has been declared an emergency, highlighting the need for urgent action. 

Mr. Mweetwa urged the public to remain calm, assuring citizens that authorities are closely monitoring the situation and stand ready to implement further measures if necessary to safeguard the economy.

The temporary tax relief measures are part of short-term interventions designed to support Zambia's socio-economic development. The government is working to ensure that essential goods and services remain affordable, and the economy remains stable.

The decision to suspend excise duty and zero-rate VAT on petrol and diesel will provide relief to Zambians, especially those in the transport and agricultural sectors, who are heavily reliant on fuel. 

The move is expected to reduce the cost of fuel, subsequently easing the pressure on households and businesses.

The Energy Regulation Board (ERB) had previously revised pump prices upwards, attributing the increase to international price hikes driven by geopolitical tensions. The government's intervention is likely to mitigate the impact of these price hikes on citizens.

The public can expect updates on further measures to address the fuel supply crisis and its economic implications. 

For now, the government assures citizens that it is doing everything possible to stabilize the economy and ensure access to affordable fuel.