The Energy Regulation Board (ERB) has adjusted the price of petroleum products by K 1.14 for petrol, K 1.00 for diesel, K 0.71 for kerosene and K 0.99 for low sulphur diesel.
The new prices will now be K .74 for petrol, K 7.59 diesel, K 5.40 kerosene and K 10.88 for low sulphur diesel effective midnight of 12 May 2015.
Explaining the increase, ERB board chairperson Pastor Geoff Mwape said the two factors that affect wholesale and pump fuel prices are the international oil prices and the domestic exchange rates. The international fuel prices have remained stable during the period under review while the exchange rate has been volatile.
“This adjustment is mainly due to the volatility of the kwacha which resulted in the significant adjustment of the kwacha against the United States Dollars. Since the last adjustment in January 2015, the kwacha has ranged between an average of K 6.5 per dollar and K 7.42 per dollar in April 2015. During this period, the kwacha reached an all time high of K 7.8 per dollar,” Pastor Geoff Mwape said.
Pastor Mwape said periodic price adjustment are essential to ensure that there is full cost recovery in the supply chain, and thereby ensure that there is enough to procure future petroleum feedstock cargoes and finished petroleum products.
He added that future price adjustments will be dictated by changes in the key fundamentals. The ERB will endeavour to automatically adjust so that cost reflectivity is attained for each and every petroleum feedstock cargo and imported finished petroleum products.
The last increase in petroleum products was in April 2014. Between this period to date, a number of fuel reductions were affected, mainly as a result of falling international oil prices and a fairly stable kwacha.