Energy Regulation Board (ERB) has reduced the pump price of petroleum products by K1.32 for petrol and K1.22 Ngwee per litre for diesel which will now be sold as low Sulphur Gas oil.
The Price of kerosene remains unchanged. Petrol will now be sold at K19.84 from the current K21.16 ngwee. Diesel which is now low sulphur will be sold at K18.93 ngwee, kerosene will be sold at K15.39 ngwee per litre.
The new price will take effect at midnight last night.
ERB Board Chairperson Reynolds Bowa said that the price review has been necessitated by the decision to migrate to a monthly pricing cycle which entails that the local price of fuel is more responsive to the market fundamentals.
Mr Bowa said that according to the market fundamentals for the month of December 2021, International Oil Prices for Petrol and Diesel recorded a notable decline with the Kwacha also appreciating against the United States Dollar.
Mr Bowa said that the petrol prices declined by 11.56 per cent from $96.39 cents per barrel recorded in October 2021 to $85.25 cents in December 2021.
In a statement to the media news, Mr Bowa said Diesel Prices also declined by 10.64 per cent from $93.27 cents per barrel to $83.35 cents per barrel.
He said following the government’s policy decision to place Indeni Refinery on care and maintenance, there will now only be one type of diesel sold on the market and that is the imported low Sulphur Gas oil or Diesel.
Mr. Bowa said the ordinary diesel that was previously produced by Indeni will no longer be available on the Zambian Market resulting in the pricing structure now only providing for one price for diesel.
He said subsequent price reviews for petroleum products will be carried out every month based on the outcome of the trend in the exchange rate and International Oil prices in a month preceding the review.
Mr. Bowa said the monthly price reviews are essential to ensure there is full cost recovery in the supply chain which in turn ensures adequate revenue for the procurement of future fuel requirements for the country