Fuel prices go up

Daily Nation Newspaper - - Home News - By SI­MON MUNTEMBA

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.

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