Fuel prices go up
THE Energy Regulation Board (ERB) has adjusted the pump price of fuel upwards effective last midnight citing changes in exchange rate of the Kwacha and crude oil prices in international markets, two main variables that influence the price of the commodity. A litre of petrol will now cost K16.06 from K13.75 while a litre of diesel will sell at K14.65 from K12.14 and a litre of kerosene has been increased from K8.85 to K11.34. ERB board chairman Raymond Mpundu announced the increase in a statement yesterday. Mr Mpundu said the key drivers for the price review were the international oil prices and the exchange rate of the Kwacha against major trading currencies, especially the US Dollar. “The ERB has reviewed the current petroleum cargo together with the finished products component of the consignment, and determined that there shall be an upward adjustment in prices per litre by K2.31 for Petrol, K2.64 for Diesel and 2.49 for kerosene, due to changes in the fundamentals that determine fuel prices. “The key drivers for this price review are the interactional oil prices and the exchange rate of the kwacha against the major trading currencies, especially the US Dollar,” Mpundu stated. He said during the price review period the Government imported the following consignments at a total cost of US$169.07 million: 102,610 metric tonnes (MT) of crude petroleum feedstock cargo and 14,689.56 m3 of petrol and 61,084.10 m3 of diesel as finished petroleum products. “And 15,256.11m3 of petrol and 15,151.52m3 of diesel under the Saudi Arabia Government to Government deal. It should be noted that the Saudi Arabia deal translates to about 13 days stock of petrol and about 6 days stock of diesel for the Zambian market. It therefore had minimal impact on the general supply patterns and consequently the local prices of petroleum products,” he stated.
A litre of petrol will now cost K16.06 from K13.75 while a litre of diesel will sell at K14.65 from K12.14 and a litre of kerosene has been increased from K8.85 to K11.34.
He said in line with Government policy, fuel prices were determined on the basis of each cargo of petroleum feedstock and finished petroleum products imported. He explained that each cargo lasts for about 60 days on average and prices are determined to ensure full cost recovery, among other considerations. Mr Mpundu said the price review was based on the cost plus mode/ used to determine fuel prices.