Fuel p r ic e s g o u p
By AARON CHIIYANZO
FUEL pump prices have been revised upwards following an increase in international oil prices and the depreciation of the Kwacha against major trading currencies, the Energy Regulation Board (ERB) has announced.
The price of oil has hit $70 a barrel for the first time since December 2014.
Brent crude climbed after members of Opec, the cartel of 14 oil-producing nations that accounts for 40 percent of the world’s output, said it would continue to limit supplies. The RAC, the motoring group, has warned that rising oil prices could lead to higher forecourt costs for motorists
The changes in the pump prices are effective from last midnight, ERB board chairman, Raymond Mpundu said in a statement issued in Lusaka yesterday.
Mr Mpundu said the price of petrol had been hiked to K13.75 per litre representing an increase of K0.78 from K12.97.
Mr Mpundu said the diesel price had been revised from K11. 09 per litre to K12.01, representing an increase of K0.92, while kerosene had been increased from K7.82 to K8.85 per litre.
He emphasised that the price adjustment was based on the current cargo of finished petroleum products and petroleum feedstocks.
Mr Mpundu explained that the adjustment of less than K1 per litre for all petroleum products except kerosene was inevitable to maintain the security of supply.
He said that from the last price adjustment on 17th October last year, Murban crude oil prices per barrel increased by 9.04 percent from US$ 58.10 to US$64.85 per barrel in December.
Mr Mpundu said since the last adjustment, the Kwacha had depreciated against the United States dollar by 2.15 percent from an average rate of US$9.76 to US$10. 03. “Of the two fundamentals, the international oil price has been the most volatile and is the key driver for this price adjustment,” he said.
Mr Mpundu pointed out that prices had remained stable as it had now been five months since the last price adjustment.
Meanwhile, Mr Mpundu called on stakeholders to explore avenues to maintain price stability and possibly lower prices whilst maintaining price recovery.