The Energy Regulation Board (ERB) says current gains from a reduction in international oil prices have been negatively affected by the depreciation of the Kwacha during the same period.
ERB says this has resulted in no price changes made since the last review in December 2019.
ERB Public Relations Manager Kwali Mfuni says ERB has been monitoring movements in international oil prices and the performance of the Kwacha against the US dollar as the two directly impact local fuel prices.
Ms. Mfuni has noted that price review conducted on a cargo procured in January 2020 when the oil prices had not yet started to reduce and the Kwacha had started to depreciate showed minor price variations.
In a statement to media, Ms. Mfuni explained that ERB found it prudent to maintain fuel pump prices as changes would have been below the 2.5 % trigger band for price adjustment.
Ms. Mfuni said even if international oil prices fall during the period when the current cargo is consumed, the perceived benefit is not immediately passed on in the form of a domestic price reduction.
She said benefits can only be passed on if procurement was made during the period when the international oil prices are low.
Ms. Mfuni further said Zambia has not had any importation of crude petroleum feedstock since January 2020 as Indeni has been on industrial maintenance shutdown.
She said the government has in the interim relied on the importation of finished petroleum products being supplied by Oil Marketing Companies.
Ms. Mfuni said in view of the current trends, proposals have been made on options for leveraging on the low global prices and the possibility of locking insufficient low priced cargo orders.
She said that this is to take advantage of the low international oil prices.
Elo batila catch 22. We wait for wise mr Kz comments. I feel better when he explains the situation. The man has data elo the way he uses the queens English kikikiki. From lab technician to top dog. Ndiye bamuna abo
Its taken them 2 weeks to respond, oil producers are literally paying you to get their crude oil off them because all cars in Europe are parked no one is buying and these thieves are now saying we can reduce due to kwacha which we have mismanaged ..even load-shedding its the same story.
*can’t
Kwena mulifipuba.U deserve to die.Ata bane.how can you fail to procure cheap crude oil?Ba president where are kanshi?This is sleeping
Kwacha is heading south very fast. Now negative oil is on par with Zambia’s leaders – they’re both worth nothing.
With these PF government to reduce fuel, forget these are criminals. They behave as if they are aliens.
Just like saying “load shedding won’t end despite 10 year high water level due to the depreciation of the water quality.”
We get the leadership we deserve. If we vote with our heads in shake shake packs thrown at us by politicians, ninshi ni tiye tiye na poverty.
What wasted years these are!
These guys very stupid indeed!
Any one who expects any thing different from lungu needs to be put on mental medication…..
This is a clueless leader who has suddenly realised that buying goods made in Zambia is good for the economy…….
Why reduce fuel prices when this will not be passed on to the consumers. If fuel is reduced now fares will not be reduced but when it goes back to old price they will increase price of fares. Let prices be like this if there will be any gain let it be channelled to fighting Covid 19
Zesco still implementing load shedding even when there is no drought these guys have a cover up for everything now it’s fuel another story if you fail to rule give others a chance stop troubling us.
There are busy getting fuel for free right now and they can never say the truth because there used dribbling us.
It may be wise for the ERB to work closeely .with their South African counterparts and learn how this new concept works. South Africa has the same depreciation rate of the Rand like tha Kwacha, but have dropped their fuel prices by almost two(2) rand. Please ERB and Zambia at large dont invent the wheel just bench mark and do the right thing
KZ ,
Where are you ??
It is sad when people become comfortable with misleading analysis. The oil prices on the international market have collapsed. Is this person saying our Kwacha has collapsed too? Please next time find a better lie.
What happened to reserve storage tanks under construction by M,wasa? This would’ve been the best time to stockpile
Ok say ERB is saying that the negative oil prices have been wiped out by the depreciation of the kwacha? Is this what they think our Kwacha that even negative prices can not overcome this.
How about they roll out the ERB fuel price formula so that they stop treating us like children?
Let’s be transparent. Release the formula ERB.
Sad. Our PR friends have to say something because they are expected to say something.
@John Isoliye, that’s not the real KZ you are ‘impressed’ with. I am even surprised that you are mesmerised by someone who has been planted here to merely disparage sensible bloggers and offer no rationale views about any area of human endeavour. No reasoning, just a perpetual defence of the indefensible, especially in relation to the rogue PF regime.
But an increase is always immediate, even on old stock.
Do you buy crude oil in kwacha? Zambians are sinking lower and lower and they have started digging.. crude oil is so cheap why not buy now? Americans are giving away Brent oil for free! You hate free things but willing to spend thousands of dollars for a certain chawama hen to travel to USA to receive second hand fire engines .
Spaka I am here. I was held hostage by my crazy kids… lock down things. Only a father would understand. Today I am back in full swing. Once the whisky starts flowing later I will engage fully
LETS WAIT FOR 2021 WHEN HUMBLE-HUMBLE WILL JUST SPRING FROM NOWHERE TO ANNOUNCE A REDUCTION, JUST FOR POLITICAL MILEAGE. FOR NOW JUST SUFFER YOU DOCILE ZAMBIANS.