Government has with immediate effect withdrawn operating licenses for Zuva and Glow Petroleum which it says have been overpricing fuel.
Zimbabwe has been experiencing acute fuel shortages for the past three weeks with motorist having to spending hours in long queues waiting to buy fuel.
Speaking at a media briefing Munhumutapa offices the Minister of Energy and Power Development, Joram Gumbo said this was after the government realized some irregularities in the pricing system of the company.
"We have not withdrawn its whole operating license as such, but we have taken licenses at three of its service stations because the companies were overcharging clients prices above the ZERA (Zimbabwe Energy Regulatory Authority)... " he said.
Glow Petroleum has in the past been cited for overcharging clients as they would increase their prices twice or three times a day, a move met with scorn by motorists.
Addressing at the same press conference, Minister of Information, Monica Mutsvangwa said the government will continue to engage with retailers and the private sector in order to create a common partnership in addressing national economic challenges.
The government says it remains concerned over the continued high prices and the prevailing three-tier pricing structure and cases where some retailers are insisting on payment in hard currency especially in the pharmaceutical sector.
This comes as most shops have continued to increase prices of basic commodities which has worsened the current economic crisis.
Mutsvangwa however, said the government was satisfied with the availability of some basic commodities as they had vanished from shelves over the past few weeks.
"Following an update report by the Ministers of Industry and Commerce; and Health and Child Care, Cabinet noted with satisfaction indications that the availability of basic commodities on the market was gradually improving, in the aftermath of the amendment of SI 122 of 2017," she said.
Last week government was forced to open the country's borders and allow imports from neighboring countries after shops ran out of stock citing foreign currency shortages which have continues to elude the market for the past few years
On the issue of agriculture inputs, Minister Mutsvangwa said; "following the meeting between President Emmerson Mnangagwa and captains of industries yesterday, there will be an inclusive approach which will see the need to engage seed and fertilizer suppliers in order to guarantee the affordability of agricultural inputs especially seeds and fertilizers."
It is reported that Mnangagwa met with representatives of seed houses and fertilizer producers after the cabinet meeting.
Maize seed prices had skyrocketed out of the reach of many as a 10KG bag of seed is going for more $200 and this has threatened the upcoming farming season.
Mutsvangwa said the Mnangagwa's meeting with seed suppliers would see the continued review of seed prices.
Turning to the fuel shortages, Mutsvangwa said the availability of fuel had increased and pinned hopes on the 100 million liters of fuel which were loaned to the government by Sakunda Holdings.