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Saturday, July 11, 2020

Zambian Consumers to save about $ 7 million per month after fuel price reduction

Economy Zambian Consumers to save about $ 7 million per month after fuel...

Zambia Energy Forum Chairperson Mr. Johnstone Chikwanda speaking during a panel discussion at the 'Invest in Zambia Business Forum' at Sandton Convention Centre in Johannesburg
Zambia Energy Forum Chairperson Mr. Johnstone Chikwanda speaking during a panel discussion at the ‘Invest in Zambia Business Forum’ at Sandton Convention Centre in Johannesburg
CONSUMERS are expected to save about US$7 million per month following the recent reduction in fuel pump prices, Energy Forum Zambia says.

Energy Forum Zambia chairperson Johnstone Chikwanda said in a press statement issued on Friday that, based on the average national fuel consumption, about US$7 million will be saved by consumers following the price reduction.

The Energy Regulation Board (ERB) last week marginally reduced fuel pump prices with petrol being reduced to K12.50 from K13.70 while diesel has been reduced to K10.70 from K11. 40.

The price of kerosene has been reduced by K1.22 and is selling at K6.81 from K8.03.

Mr Chikwanda said while some sectors of society feel that the reduction is minimal, it will go a long way in cutting down costs incurred by consumers.

“Energy Forum Zambia is calling on consumers of fuel products to appreciate the recent price reductions announced by ERB even though the margin looks small. Some fuel consumers have a huge monthly bill, so this reduction can go a long way in ameliorating cash outflow,” he said.

He also explained that, following the removal of some fuel subsidies, consumers will now be paying the actual fuel price, influenced by the exchange rate and crude oil price on the international market and this may result in frequent price changes.

“The fundamentals [exchange rate and price of oil on the global market] are dynamic and not static and consumers can expect frequent fuel price variations either upwards or downwards, meaning ERB is likely to announce new prices every six weeks or so depending on the situation as is the practice in some countries such as South Africa,” he said.

Mr Chikwanda has since called on consumers to monitor the movement of the two fundamentals to predict the likely scenario in the near future.

He said the Forum projects that the price of fuel will be hiked in the near term in view of the increase in the price of oil on the international market.

“We predict that the next fuel price announcement is likely going to be an increase based on the fact that the price of crude oil has been going up [although] the exchange rate has fairly remained stable,” he said.

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  1. Saving? Are you realy thinking that one Kwacha amount to saving when you did increase by 3 and then lowered by 1???
    Bottom line, using your own figures, Zambians are worst off by US$ 14,000,000 per month.
    PLEASE stop this creative accounting now.
    It is grade 4 maths: 9.7 + 3.3 = 13 – 1 = 12!!!
    Where is f*cking saving???

    • Instead of thinking about the maths or your pocket. Have a thought for the impact on the country’s finances.

      This $7m comes out of the the public purse already under pressure.

      The reduction should never have happened. Oil has increased 13% in December and the kwacha lost over 3%.

      Prices should go up from here and we should support a hike not a drop.

    • Lungu: whilst in Zambia fuel
      Was being reduced (abet little reduction according to you), in South Africa it was increased. EFZ has advised that we check the trends in fuel prices. I would further suggest we check the trend in fuel prices in the region for us to appreciate the prices. For your own information South Africa even has SASOL Oil that is extracted right in South Africa. Give praise where and when it’s due and condemn when it also due.

  2. Are these people really educated?? This analysis sounds like coming from a tarven after drinking enough chibuku. Saving???

  3. What kind of thinking is this? Which savings? When the price was adjusted upwards from K9.87 per litre of petrol to K13.70 per litre, you didn’t tell us how much we would be losing. Now you are quick to do your rogue maths which makes sense only to yourselves! Don’t be ambitious retrogressive, do your math right!

  4. The prices of fuel should always be adjusted up or down depending on the market conditions. This is how it should be not a fixed price…Every reduction in fuel price is most welcome!

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