FUEL PRICES SLASHED

Tue, 08 Aug 2017 12:46:44 +0000

By Justina Mulenga

GOVERNMENT has reduced the price of fuel by an average K0.90 per litre from midnight, Tuesday, August 8th 2017.
Energy Regulation Board (ERB) chairman Raymond Mpundu announced the reduction in line with the Cost-Plus Model that was currently used to set fuel prices in Zambia.

Mr Mpundu announced that petrol would now be sold at K11.67 per litre from the previous K12.50 while diesel was now at K9.87, kerosene K6.50 and low sulphur gas (diesel) at K12.16 effective midnight on Monday.

He said ERB’s reviewed price on the current wholesale and retail fuel prices was based on the most recent importation of petroleum feedstock and finished petroleum products.

“The decision to review prices is also in line with the policy guidance that fuel price adjustments will be made periodically as fundamentals that determine them change.

“This price adjustment takes into account refined petroleum products that have been imported since January 2017, fundamentally, the price of this importation has to be recovered,” he said.

He announced that the current prices of fuel at the retail level per litre should be petrol at K11.67, diesel K9.87, kerosene K6.50 and low sulphur gas (diesel) at K12.16 from midnight.

Speaking at a media briefing at the ERB headquarters in Lusaka yesterday, Mr Mpundu said the price change on the petroleum products was greater than the set 2.5 percent threshold.

“Specifically in July 2017, the government imported 105,000.00 metric tonnes of feedstock. Mr Mpundu said fuel prices in Zambia were largely determined by two factors which were international oil prices and the exchange rate for the Kwacha against the United States Dollar.

He also said ERB effects a change to current prices of petroleum products if the proposed change in the wholesale prices, on average was greater than the set 2.5 percent threshold.