Zambia has declared a fuel supply emergency and introduced a three-month tax relief package, including zero-rating of VAT and suspension of excise duty on petrol and diesel from 1 April 2026 to 30 June 2026, to contain rising fuel costs.
Zambia has implemented temporary fiscal measures on fuel following a Cabinet decision on 31 March 2026, chaired by President Hakainde Hichilema, in response to what it described as an emergency in the national fuel supply situation.
The Cabinet approved the zero-rating of Value Added Tax (VAT) on supplies of petrol and diesel and the suspension of Excise Duty on both fuels. The measures took effect from 1 April 2026 and will remain in place until 30 June 2026, covering a three-month period.
The interventions have been enacted through the Value Added Tax (Zero-Rating) (Amendment) Order 2026. Alongside VAT zero-rating, the suspension of excise duty forms part of a broader short-term tax relief package aimed at stabilising fuel prices.
The government cited continued disruption in global oil supply chains and rising international crude oil prices, linked to ongoing conflict in the Middle East, as key drivers of the decision. It said the measures are intended to cushion households, businesses, and productive sectors from rising fuel costs and prevent further increases in the cost of living.
Officials noted that without the intervention, fuel pump prices for April 2026 would have been significantly higher.
The government has urged the public to remain calm and said it is monitoring developments in global energy markets closely, with scope for further action if required.
