The Zimbabwean government is considering a significant increase in the mandatory ethanol blend in petrol, from the current 5% to 20%, according to recent statements by officials. The policy aims to lower pump prices for consumers and reduce the country's heavy reliance on imported fuel, thereby conserving foreign currency.
Energy and Power Development Minister Edgar Moyo confirmed the proposal in late 2025, stating that the move would leverage local sugarcane production for ethanol. The government argues that increased use of the biofuel blend, known as E20, could make petrol more affordable and support the local agricultural sector.
However, industry analysts and the Zimbabwe Energy Regulatory Authority (ZERA) have highlighted a major obstacle: the current high cost of locally produced ethanol. Reports indicate that local ethanol is often more expensive than imported petrol, which could undermine the intended price reduction for consumers if the policy is implemented without addressing production costs.
The final decision on implementing the E20 blend is pending further analysis and stakeholder consultations. The success of the policy hinges on making local ethanol production economically viable to achieve the dual goals of price reduction and import substitution.
