Board (ERB) offices
OIL prices on the international market have fallen from about US$115 per barrel in June, 2014 to about $81 per barrel last week.
In some African countries, like South Africa, the reduction in the wholesale prices of oil has triggered drops in the pump prices of petroleum products, especially petrol and diesel.
Local consumers have, therefore, called on the Energy Regulations Board (ERB) to ensure that Zambians also benefit from the nose-diving prices of the essential commodity.
Through the Zambia Consumer Association (ZACA) the local consumers have prodded Government to take advantage of the tumbling oil prices on the international market to reduce the cost of fuel locally.
In South Africa petrol prices recently decreased by 45 cents a litre while diesel saw even a bigger drop of 60 cents a litre.
In Zambia, however, fuel prices remain relatively high at K10.63 per litre for petrol, K10.01 per litre for diesel, while kerosene is pegged at K7.48 per litre.
These prices have been in effect since April when the ERB adjusted oil prices upwards in view of the Kwacha depreciating against major convertible currencies.
ZACA executive director Samuel Simutunda said in an interview at the weekend that it was not fair for Zambia to continue charging exorbitantly for fuel when other countries were slashing prices for the commodity.
Mr Simutunda said two major factors that should lead to reduction in fuel prices are the appreciation of the Kwacha against other convertible currencies and plummeting oil prices on the international market.
“We are getting concerned that despite the drop in oil prices on the world market over the last two months, consumers are still subjected to high petroleum prices on the local market”.
“Our appeal therefore is that Government intervenes to ensure that the cost of fuel reduces in tandem with the market changes internationally,” Mr Simutunda said.
Concerned citizen, Leonard Chibansa, of Kitwe said that the ERB should not wait for government for it to adjust the prices of petroleum products.
He noted that, apart from South Africa which has twice effected the fuel price reductions, other countries like Botswana, Namibia and Kenya have at least once reduced the prices.
He separately supported Mr Simutunda that effects of high fuel prices were of a spiral nature as the commodity was vital in everyday economic activities.
“High fuel prices just like those of electricity trigger the cost of other goods and services as suppliers suffer high transport costs and this increases the overall cost of doing business,” Mr Simutunda said.
Brent crude futures settled at $83.39 per barrel last Friday having hit a four-year intraday low of $81.63 on Wednesday.
Its almost impossible for Zambian ministers, managers both in gvt and qusi gvt and parastatals etc to think about fuel price reduction since they ALL get FREE (and a lot ) fuel, FREE cars, FREE airtime, FREE almost everything. Maybe even free concubines!!! Its a terrible uphill battle to make them see sense. Hence they end up chewing all that which could have gone to uplift the country. Wonder why most have big stomaches???
Wonder why most have big stomachs? Ask Daniel Munkombwe!
The extra money saved will be used to “put more money in their pockets”!!!!
PF style!
Indeed, ask Munkombwe and his ‘Kusheta politics’ philosophy. He has the answer right off the top of his head, trust me.
surely how do they do like wise. Prices once reduced should along trigger down the line especially now that we lost a head of state
This is the challenge when there is no transparency by government and the ERB on how fuel is acquired and distributed in Zambia. Prices of fuel have been dropping (though granted our exchange rate has been rising), but nonetheless there are parties and intermediaries making money on the other side of this deal, while we the everyday consumer wallow in misery. Its funny how we only know how to raise prices in Zambia, not drop them!!
Two months ago wen this good news came but the useless regime would not think of the poor, if it was an increase it, erb, effect that soonest, may pf die forever like unip.
…long overdue.
Poor economic management rule has destroyed hope for the majority of zambians. God bless Zambia at least change is coming pf never again.
Why ERB to wait for GOVT’s directive on pump price when these guys get free litles of feul & there are making a very big PROFTY on Zambian POOR People.
If it was increasing pump price nga ‘KALE’.
So from June 2014 someone has been enjoying the profits at the expense of poor motorists….let’s ask the corrupt greedy middlemen like Kabimba.
Please ERB reduce the fuel prices.when increasing u do it very fast,shame!you’re the ones which damage the image of Govt.you get paid by doing right things!ERB act fast please.
Can fuel which was paid for at 20 be sold at 5 just because currently the prices are low.
The campaign promise by the PF and the content of its manifesto on the price of fuel was that the price of fuel was the highest in the region because of high taxation. I was therefore surprised when we were informed that the price of fuel was subsidized by the MMD despite it being the highest in the region and subsidies were subsequently removed. I had the impression that the commission of inquiry was set up to see how these taxes could be removed to make the price of fuel competitive in the region. Was this campaign promise and manifesto based on a false premise of high taxation on fuel?
Economics dont work like that, you even cheat as if you have never been to school
In all fairness, ERB should at least make us understand why fuel prices have remained this high in Zambia when fuel is seeing an all time low.
Keep in mind that we can also get already processed fuel cheaper from Angola. Why is our fuel over K10?
When a slight hike is detected, ERB is quick to increase prices, yet slow to reduce them.
What is ERB’s mandate — are they there to just increase fuel prices?
#OneZambia
The pangarians may have smelled some coffee in this and may want to use it to raise money for the by-election.
What we hav now is old stock,so let the old stock run out and prices will drop after procuring tha nu stock
Russia and China signed a framework agreement $400 billion gas deal taking advantage of asset movements in price movements of ,doing derivatives and making to market asset classes like bonds and currencies taking advantages of yields appropriately, as the global growth appears to slap from expectations
Last two months have seen a fall in oil prices as reported above between from 100 to 80,major oil producers like Saudi are taking the market in competition to US oil supply curve
Its beginning to be of interest and those with foresight will make huge savings and profits
the prices will drop when the funeral is over…so that they dribble the millions of zambians into thinking PF cares for them to buy them votes………………………………………….we know the hidden agenda./
Let’s vote wisely! These I.diots should never see the light of the corridors of power again (PF)! They have messed the economy. Already they have accumulated $4.7b in debt in just 3 years, what more if they were there up to 2016.