PETROL PRICES HITS K34.1
THE pump price for fuel has finally jumped to K34.1 from K29, an increase of K4, the highest increase ever after four months of maintaining the price of the commodity.
Yesterday, the Energy Regulation Board (ERB) has adjusted upward the pump prices of fuel by K4.2 for petrol and K2.1 for diesel effective today.
ERB Board Chairperson, Reynolds Bowa announced that the petrol will now be selling at K34.1 from K29.98 and diesel would be selling at K32.1 from K29.96 effective February 1, 2024.
Mr Bowa said during the period under review, the prices of oil on the international market were relatively stable. The relative stability was mainly attributed to uncertainties regarding global oil demand, higher oil production output from the Organisation for the Petroleum Exporting Countries (OPEC) and price cuts implemented by Saudi Arabia that had unsettled the market. He said the ultimate offset supply concerns arising from the geopolitical tension in the Middle East.
Mr Bowa said the geopolitical anxiety over global oil supply as well as supply disruptions to some countries such as Libya weighed against softening demand conditions globally presenting stable prices within the oil market. He said notably, from the last fuel price review on December 31, 2023, the international price of petrol increased by 0.53 percent, while diesel and kerosene declined by 0.75 percent and 3.13 percent respectively. Mr Bowa said specifically, petrol marginally increased from US$84.33/bbl to US$84.78/ bbl while diesel marginally declined from US$96.79/ bbl to US$96.06/bbl.
He said kerosene fell marginally from US$99.51/ bbl to US$96.40/bbl. During January 2024, there was significant depreciation of the Kwacha against the United States Dollar.
Mr Bowa said the average exchange rate depreciated by 9.81 percent, the depreciation was mainly attributed to increased demand for foreign currency from key sectors of the economy, particularly energy and agriculture.
“The depreciation of the Kwacha has resulted in an increase in the domestic wholesale and pump prices of petroleum products with the exception of kerosene,” he said.