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Wednesday, January 20, 2021

ERB reduces price for low sulphur gasoil

Economy ERB reduces price for low sulphur gasoil

The Energy Regulation Board (ERB) has reduced the pump price for Low Sulphur Gasoil (LSG) by K0.83 per litre which translates into 7.74 percent.

This is contained in a statement made available to ZANIS in Lusaka today by ERB Chairman Geoff Mwape.

Pastor Mwape announced that ERB is now mandated to determine the pump prices of LSG, a function previously performed by the Ministry of Mines, Energy and Water Development.

Pastor Mwape explained that the reduction had been prompted by low demand for the commodity exclusively imported for use by specialised industrial consumers.

He said customers require cleaner and environmentally friendly fuels therefore the ERB will set the price for LSG using principles of the Cost-plus Model.

Pastor Mwape said the pricing model operates on the principle that the final price of petroleum products covers all costs incurred in the supply chain.

He said therefore, the cost of LSG will be determined based on the cost of each consignment of the LSG imported.

Pastor Mwape pointed out that the cost of the consignment is mainly affected by global oil prices and the exchange rate of the Kwacha to the United States Dollar.
He said the consignment of LSG was purchased at a time when the international oil prices were still on a down ward trend.

The ERB Chairman said that this was consistent with the recent price adjustments for other petroleum products.

Pastor Mwape said the benefit of the continued drop in international oil prices is now being extended to the wholesale and pump price for LSG.

6 COMMENTS

  1. @Wajimona it’s diesel with lower content of sulphur. It’s better for the environment when it comes to pollution and over time, better for most diesel engines gradually, making vehicles and machines having a longer life span.

    The reduction by ERB is still too little. Normal diesel reduced from K10.01 to K6.59, petrol from K10.63 to K7.60 per litre and they can only reduce LS Diesel from K10.95 to about 10.12?
    LS Diesel comes from the same crude oil barrel as the other fuels. If there is an overall reduction in the barrel price then surely it should be proportional to the price of each fuel. Am I missing something?

  2. Price Movement of Low Sulphur Gasoil

    Month Price Change

    Jun 2014 2.96 –
    Jul 2014 2.88 -2.80 %
    Aug 2014 2.85 -1.01 %
    Sep 2014 2.74 -3.86 %
    Oct 2014 2.53 -7.55 %
    Nov 2014 2.43 -4.03 %
    Dec 2014 2.03 -16.33 %

    At least a slightly higher reduction as seen in month of December Price change over the period from July 2014 to December 2014 from about 2.94 to 2.03 and forecast expected a further reduction

  3. Month USD Change In Price

    Jun 2014 2.96 –
    Jul 2014 2.88 -2.80 %
    Aug 2014 2.85 -1.01 %
    Sep 2014 2.74 -3.86 %
    Oct 2014 2.53 -7.55 %
    Nov 2014 2.43 -4.03 %
    Dec 2014 2.03 -16.33 %

    Effective annual rate over the above

  4. 1. What is the sulphur content for Zambia’s Low Sulphur Diesel in parts per million(ppm)?
    2. Why can’t Government ban the use of ordinary Diesel, the way they did with petrol to only allow unleaded petrol?

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