Fuel price up by 78 ngwee

THE Energy Regulation Board (ERB) yesterday announced the uphill adjustment in fuel pump prices effective midnight tonight citing the weak kwacha and high crude oil prices.

The price of petrol has increased by 78 ngwee from K15.20 to 15.98, diesel by 80 ngwee from K13.43 to K14.23, kerosene by K1.68 from K11.34 to 13.02 while low sulfur gas will now sell at K16.52 from K15.72 representing an 80 ngwee increase.

ERB board chairman Raymond Mpundu said in a statement the adjustment was based on the review of imported finished petroleum products and petroleum finished cargo.

Mr Mpundu said the current petroleum feedstock cargo for this price review was for the consignment which docked in August 2019.

He said the government in August imported 99,983.34 metric tonnes of petroleum feedstock cargo and finished petroleum products comprised 34,073.63 cubic metres of petrol and 70,000.52 cubic meters of diesel. Mr Mpundu said from February to August this year the kwacha depreciated while international oil prices continued on an upward trend and the two fundamentals have not been favourable from the last fuel price adjustment in February 2019 up to September 2019.

He said the two had therefore had the combined effect of increasing the domestic wholesale and pump price beyond the 2.5 percent trigger band. In view of the recent developments in the Middle East, the ERB was monitoring the situation and would inform the public if the next cargo imported into the country would be affected by recent attacks on key oil facilities in Saudi Arabia.