THE Energy Regulation Board (ERB) says there will be no adjustment on fuel pump prices.
In a Press statement issued in Lusaka today, the board said this is in line with the “cost-plus model” which is currently used to set fuel prices.
ERB also said that the decision was in line with the policy guidance at the last price adjustment that fuel prices shall be reviewed after every 60 days.
“This is because the marginal price increase for the current consignment that would have been made is lower than 2.5%-to the minimum threshold for adjusting prices under the cost plus model. Therefore while the cost of petroleum feedstock and finished petroleum products currently on the market is slightly higher than that of the last assessed cargo, no adjustment shall be made,” read the statement in part.
“The Government of the Republic of Zambia imports a commingled petroleum feedstock typically consisting of; petroleum feedstock (41%); condensate/ naphtha (13%); and gasoil (diesel) (46%). In turn the ERB determines the wholesale and pump prices. The consignment whose wholesale pricing was being determined are (i) 105,018 metric tonnes of petroleum feedstock cargo carried by MT. DeshMahima. The feedstock cargo berthed and discharged at the port of Dar-es-Salaam from 26th to 28th December, 2016 and (ii) Fished petroleum products (petrol amounting to 37, 904.45 cm and diesel amounting to 79, 692.93m), that was imported beginning from 11th February to 31st March 2017.”
The statement has further stated that fuel prices in Zambia are largely determined on the basis of two factors which are international oil prices and the exchange rate of the Zambian Kwacha against the United States Dollar.
“Between August 2016 and January 2017, international oil prices generally increased. Specifically, International oil prices gradually rose from US$44.72/barrel (bbl) in August to US$51.35/ bbl in October.
Further, from November 2016 to January 2017, a much steeper rise is international oil prices was observed.
However, there was a fall in oil prices in November 2016 mainly attributed to rising crude inventories in the United States of America and elsewhere in the world, mainly owing to record output by the organization of petroleum exporting countries,” the statement further read.
“With regard to the exchange rate, between August 2016 and February 2017, the kwacha traded between $9.76 and $10.0. During that period, the kwacha appreciated against the United States Dollar while from November to January 2017, it depreciated. However, by February 2017, the local currency had again appreciated to $9.76.”
The statement has indicated that in view of the forgoing, a combined effect of the import cost, for petroleum feedstock and finished petroleum products, wholesale and pump prices are retained at current levels shows that there would be marginal losses.
“This therefore implies that wholesale and pump prices would need to be adjusted slightly upwards to allow for recovery of cost. However to allow for price stability and in keeping with the application of the cost plus model, a price adjustment can only be implemented if wholesale prices rose or reduced by 2.5%.
Therefore, under the circumstances, 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 remain as follows at K12.50 for petrol, K10.72 for Diesel, K 6.81 Kerosene, and K13.01 Low Sulphur gas (diesel),” read the statement
Wrong Heading: 60 days from the last adjustment not ‘next 60 days
Mumbi once said HH was being disingeneous. I think he should have just said HH, the UPND leadership as well as their layers and advisors are disingeneous.
Not increasing is welcome, but what we need is reduction in prices please!!
Good afternoon morning and evening to all Zambians around the world. I would like to confirm that we are relieved that we have not lost any lives from our upnd team in London following the terrorist attacks in Westminster today. We are also glad that no Zambian lives have been lost. It is sad that the pf government in conjunction with their cadre high commission in London have not issued a statement as we have many Zambian economic refugees in UK who have been forced there due to pf failures. Rip to the four that have lost their lives. Meanwhile here in Zambia people are making life and death decision at fuel pumps and while people starve the pf have audacity to say the high prices will remain and then will increase after 60 days. How sad
Nez
Chief strategist of the upnd
@NEZ and your tonga party upnd will die in opposition.look,the other day i told you that the voting pattern in Zambia is very regional now.hh’s upnd will sweep votes in 2021 in 3.5 provinces while any PF candidate will equally sweep votes in 6.5 provinces.this is the sad news for hh’s upnd.forget about rigging.hh can camp from today until 10/08/2021 campaigning in Luapula,Northern,Muchinga,Eastern,CB and Lsk urban areas but still get zero mp and fewer votes than PF.hh’s upnd has a mountain to climb in 2021 for them to do better in 6.5 provinces-reject this fact at your own peril!!AS FOR FUEL,ERB MUST REDUCE THE PRICES.PLEASE ECL TELL ERB TO REDUCE THE PUMP PRICE FOR FUEL!!
Let the petition heard if you did not steal.
This NEZ thing got the same news from sky news,BBC,CNN like many of us are doing now in our homes in Zambia then wants us to believe his lies that he is in the UK-rubbish!!your fellow tonga Mweetwa has gone quiet now after he was warned in UK that he will be deported to Zambia after making a lot of noise online.many of stories this Mweetwa posted online were criminal.next its you NEZ.poverty in a poor country like Zambia has been there for year and it will be there for next 100 years or so.hence,cheat hh’s blind followers and not us majority Zambians!!WORK HARD NEZ TO SET YOURSELF FREE FROM POVERTY.KAINDE CANNOT ERADICATE POVERTY IN ZAMBIA.IN FACT HH IS A CAUSER OF POVERTY HERE BY TAKING PART IN PRIVATIZATION OF MINES!!
Is lungu not a fraud convict ?
for your information. I reside in Lusaka zambia. I have never claimed to live in the UK. I travel to the UK for personal and party business. I am fighting for zambia’s economic liberation. Why would i reside in UK to fight thugs like yourself?
THERESA MAY HAS JUST SAID IN UK FEW MINUTES AGO “WE WILL NEVER ALLOW THE VOICES OF HATE AND EVIL TO DRIVE US APART”.this is exactly what HH and his evil followers are doing in Zambia.today Zambia is very divided mostly because of hh’s upnd way of doing politics since 2006.hh’s politics of hate and evil is doing Zambians apart.THEREFORE,WE MUST ALL TEAM UP AND REJECT THIS EVIL POLITICS DONE BY HH.I HAVE SAID IT HERE SEVERAL TIMES THAT ANY NORMAL ZAMBIAN MAY COMPARE UPND TO A TERROR GROUP!!!for HH losing 2016 election marked the end the world-shocking!!
Let the petition be heard if lungu did not steal.
Muyopa chani ???
ERB ,Zamtel ,Zambia Airways ,Zambia Railways none of these bodies have ever managed things well.Does this mean Zambians don’t have the IQ to run complex entities and is that the reason why we’re dominated by Shoprite,MTN ,and Chinese running the mines?
Yes,
Zambians lack business acumen.
They can only provide manual labour for house work, garden work, mining work and shop work
What is the rationale behind this story.
I am a PF supporter and I am gay and proud. I thank President Lungu for recoginising gay rights. My partner Jupe from sweden who is the most handsome man in the world can now move to zambia permanently and support me. I will even be able to afford fuel for my car when he moves here. i cannot wait
When did lungu recognise ding dong bottom rights ?
Thought this article was about fuel prices, yet because of party politics thus has gone about topics unrelatrd, started by the office worker peace for zambia.
Read your blogs and then understand why parastals in zambia are failing to be managed properly.
We get sidetracked and dont FOCUS on the job at hand.
Where in the world do u turn up for work latr, have 2 hours for lunch, piss around in the morning and then everything starts to get going after 14hrs. Giving 2to 2.5 hours of actual work.
Work, commitment and unity is how countries succeed.
We whinge about mines robbing us, we put them their we have ZRA to protect out interests. ELECTED Governments set the royalties and taxes and then we blame the mines. Take them out of zambia and see where we will be. The governme t can take…
The government can takeover the mines. If mines are cheating us why has successive Govts not taken over the mines.
WE ARE THE PROBLEM AND THE SOLUTION
LT NO MORE HOLDING MY POSTS AND PUTTING THEM ON AN UNRELATED TOPIC DAYS LATER.
Why did you hold back my blog last week about our fixation with copper.
Tell e rybody that tin is worth $18000 per ton copper $5700 per ton yet pur mines minister didnt comment.
Ok. So now we know about tin. Why cant, government make a tin mine run by zambians to test our ability.
Why are chinese involved in tin. Well secret from zambisns.
Peace for Zambia you are connected start talking to those that matter or are just capable of disseminating in conjunction with Mr Terrible. ALL Zambians want a future for Zambia. We are many tribes but should be one people
What a complicated news article! Ba LT do you know your audience?
Fuel is usally bought on 90 days or more in advance at fixed contract with agreed exchange rates. So the articel is just drivel. Trying to make people believe ERB is working hard.
If we are buying at spot price or on delivery we are littlw fish in a very big pond
@spaka like lilo:please go and hear upnd petition in your dundumwezi concourt because as per Zambian Republican constitution that petition died after 14 days.please note that its not PF who put the time frame in the new constitution which ECL signed in 2016 but your upnd mps together with mmd mps during Levy Mwanawasa regime.your HH cried for this new constitution day in,day out before ECL signed.HH did that minus knowing details in it.today you(upnd) only have yourselves to blame!!!in bemba they say “umwana ngaalilila akasembe mupele,ngakamukoma fya kwe”.upnd cried for a new constitution and were given.they got biten by the same and they only have themselves to blame-period!!