Fuel prices poised to increase

THE fuel pump price is likely to increase due to continued depreciation of the Kwacha, Minister of Energy, Mathew Nhkuwa has said.

Mr Nkhuwa said Government could not rule out the possibility of revising the cost of fuel looking at the continued depreciation of the kwacha.

He said the kwacha was current trading at K14.6 to US$1 and the last time the price of fuel was adjusted it was at K13 to US$1.

Speaking to Journalist on the sidelines of the launch of the cost of service study yesterday in Lusaka he said the energy Regulation Board (ERB) was expected to do something about it.

Mr Nkhuwa said ERB was going to recalculate and once that was done the nation would be informed on the way forward in terms of the adjustment of fuel price.

Meanwhile, Mr Nkhuwa said the cost of service study was aimed at establishing the cost of generating, transmitting and distributing power in the most efficientmanner and translating the costs into the unit cost of energy for each customer category on the basis of cost.

He said the Government had engaged the news consultant Energy Market and regulatory consultants (EMRC) of United Kingdom at a total cost of US$3 million to carry out the cost of service study for the period of 12 months.

He said the Government had attached a lot of importance to the study hence the need to take it very serious.

“I would like to urge you to undertake the study diligently and professionally. I further implore you to adhere to the set timeline to ensure that the study is completed as scheduled,” he said.

Speaking at the same event ERB executive director Langiwe Lungu said the study would hedge 10 major deliverables.

Ms Lungu explained the study would look to review the structure and conduct of the power sector, electricity demand forecast, Medium to long term least cost expansion plan and the determination of economic cost of supply, structure and levels of tariffs.