HARARE, Jan. 23 (Xinhua) -- The Zimbabwean government has reduced excise duty on fuel with effect from Tuesday in a bid to stimulate growth of the productive sector and reduce the cost of basic goods.

A statement from Secretary of Finance and Economic Development Willard Manungo seen by Xinhua Tuesday said that duty on petrol would be reduced from 45 U.S. cents per liter to 38.5 cents, while that of diesel and paraffin would come down by 7 cents to 33 cents per liter.

"The reduction in excise duty will have the impact of reducing fuel prices. This will also have the effect of reducing the impact of fuel costs in the economy's overall production cost structures across all sectors," he said.

There have been concerns over high fuel costs in the country with parliamentarians questioning why they were higher than anywhere else in the region.

A liter of petrol currently costs at least 1.40 dollars.