Rising global fuel costs linked to tensions in the Middle East are beginning to push up prices of basic commodities in Zimbabwe, with bread now selling for around US$1.20 in some outlets as economic pressures start to filter through to consumers.

The price adjustments, though still limited, signal the early stages of a broader cost ripple effect, where fuel — a key input in production and distribution — is increasingly shaping pricing trends across the economy.

Minister of Industry and Commerce Nqobizitha Mangaliso Ndlovu said while the domestic market has largely remained stable, external shocks are beginning to exert pressure.

“Local commodity prices have largely remained stable despite disruptions in the global oil market and the corollary effect on international fuel prices,” he said.

He noted that most businesses have maintained prices on essential goods, helping cushion consumers from immediate inflationary shocks.

“Most businesses have not increased the prices of basic goods such as mealie-meal, laundry soap, cooking oil, sugar, flour, rice, bath soap, washing powder, powdered or fresh milk, eggs, beef, chicken and salt,” said Minister Ndlovu.

However, the stability is beginning to show signs of strain.

“A few bread makers increased prices by an average of 10 percent,” he said, highlighting one of the first visible shifts in response to rising operational costs.

The bread price increase is largely being driven by higher fuel costs, which are affecting both production inputs and distribution. Bakers, like many producers, rely heavily on transport and energy, making them particularly vulnerable to fuel price fluctuations.

At the same time, transport costs are rising, further compounding the situation for both businesses and consumers.

“Price hikes have been witnessed in the transport sector, in particular by passenger vehicle operators,” said Minister Ndlovu.

For many households, the combined effect of rising transport fares and increasing food prices is tightening already strained budgets, raising concerns about affordability and access to basic goods.

In response to the growing pressure, government is reviewing fuel-related taxes as part of efforts to contain inflation and protect consumers.

“Government considered and approved the review of selected and time-bound fuel taxes in order to contain inflationary pressures and safeguard consumer welfare,” Ndlovu said.

Authorities are also exploring structural measures aimed at stabilising fuel prices in the longer term. Among the options under consideration is increasing ethanol blending in petrol.

“Government also considered the option of increasing the ethanol blending of petrol from the current E5 to E20 level with a view to reducing the pump price of petrol in the local market,” he said.

“Appropriate refinements of the options are underway, and the necessary fuel price adjustments will be communicated in due course.”

The developments underscore how global economic shocks are increasingly feeding into Zimbabwe’s domestic market, with fuel costs emerging as a critical transmission channel affecting everything from transport to food prices.

While the impact is still moderate, the upward movement in bread prices suggests that more sectors could begin adjusting if fuel pressures persist, raising the risk of broader inflationary trends in the coming months.