INCREASED FUEL PUMP PRICES TO TRIGGER HIGH PRICES OF COMMODITIES

Dear Editor, THE Government through the Energy Regulation Board (ERB) last Thursday adjusted upwards the pump prices of diesel, kerosene and petrol. The pump price of diesel has been increased by K2.37, kerosene by K2.51 and petrol by K1.8O.

The pump of diesel has increased from K25.64 to K28.01, petrol from K24.95 to K26.75 and that of kerosene from K18.76 to K21.27.

The new pump prices of the petroleum products were announced by the ERB chairperson, Mr Reynolds Bowa.

The upwards adjustment of the pump prices of the petroleum products came into effect at midnight of last Thursday.

Mr Bowa attributed the increase in the pump prices of the petroleum products to the global oil demand and supply imbalance caused by other factors such as the geopolitical tension or rather war between Ukraine and Russia.

The increased prices will cause prices of goods and services to escalate. The transport fares, the prices of essential commodities such as mealie meal, cooking oil, sugar, bread and meat products, among others will go up.

The cost of transporting goods and services in the chain of production from the manufacturer to the retailers will also increase. This will make the cost of doing business difficult because of the high cost component on transport.

It is on record that the majority Zambians are wallowing in abject poverty. The majority of Zambians who are grappling with poverty survive on less than US$1.00 per day.

Zambia has hit the single digit inflation rate of 9.7 percent. This follows the drop in the inflation rate from 10.2 percent to 9.7 percent for the month of May.

However, the single digit inflation rate the country has recorded will have no effect on the cost of goods and services because of the recent upwards adjustment in the pump prices of the petroleum products.

All said and done, the increased fuel prices will trigger high prices of goods and services. The consumers should brace themselves for high prices of goods and services in the wake of the increased pump prices of the petroleum products.