Price of fuel remains unchanged-ERB

Thu, 23 Mar 2017 10:30:16 +0000

By JUSTINA MULENGA

IN line with the Cost-Plus Model that is currently used to set fuel prices, the Energy Regulation Board (ERB) has decided that there will be no adjustment of fuel prices, says ERB public relations manager, Kwali Mfuni.

She said in a statement that the decision was also in line with the policy guidance at the last price adjustment that fuel prices shall be reviewed every after 60 days.

Ms Mfune said that was because of the marginal price increase for the current consignment that would have been made is lower than 2.5 percent which is the minimum threshold for adjusting prices under the Cost plus Model.

“The government of the republic of Zambia imports a comingled petroleum feedstock typically consisting of petroleum (41 percent); condensate/naphtha (13 percent); and gasoil (diesel) (46 percent), which in turn ERB determines the wholesale and pump prices,” she said.

She said that fuel prices in Zambia were largely determined on the basis of two factors which were the international oil prices and the exchange rate of the Zambian Kwacha against the United States Dollar.

Ms Mfuni also said that to allow price stability, and in keeping with the Cost Plus Model, a price adjustment could only be implemented if wholesale prices rose or reduced by more than 2.5 percent, under the circumstances that the wholesale and pump prices shall remain unchanged.

“Based on the announcement by the board in January 2017, the pump prices for petroleum products shall, therefore, remain as at; Petrol – K12.50; Diesel – K10.72; Kerosene- K6.81 and Low Sulphur Gas (Diesel) – K13.01 respectively,” she said.