Tuesday, March 5, 2024

Energy Regulation Board reduces the pump price of Fuel

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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

23 COMMENTS

  1. HH and UPND are now behaving like Lungu and PF and now even worse….this is taking Zambians for fooools…..playing ping pong..is this really the change Zambians voted for?????? So HH has just proven himself to be a demagogue and makaka President….his lies are now catching up with him

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  2. You simply import energy in Petro chemicals is transitioning in technologies and methods If you cannot have a reserve management and try to play oils price dynamics without reserve cover at the central bank you will run huge account and fiscal deficits of more than 9% because the current oil procurement prices are responding to the Russian NATO oil and gas unfolding disruption Russia supplies the EU with almost 30% oil and other natural gases 20% The disruptions to there will push demand to traditional market by as EU looks east or west for shipments Price of international oil will effectively rise to trade in the range 100 USD per barrel to almost 150 USD per barrel how will you respond to adjust erb pump prices without reserve margins

  3. Very soon I’m officially leaving Lusaka Times, cos Lusaka Times is full of PF cadres and most importantly is that “The UPND is slowly delivering in almost all every corner – Free Education, Fertilizer, Civil Servants paid, Social Cash Transfer, Retirees paid, Freedoms, No Cadres, and soon new mining Licences for Zambians – all of these true achievements what is there for me to sit here for and argue with senseless cadres? I must surely have a lot of time to waste on stupid people.

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  4. #6 This is where civil people interact and discuss ideas. It has nothing to do with PF. Besides if you want to leave because of PF it simply means you have not embraced democracy. In any case even if you take yourself off LT nobody will notice or care. Bye bye. You want people to think the same?

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  5. They should have left the price as it was but
    Fix it for one year.No increment for atleast
    One year.We do not want an increment of
    Thirty percent and reduction of five percent.

  6. Reduced but yet higher than what it was when pf left office. And some of you are even lifting your smelly bums to celebrate

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  7. The move to reduce the prices of fuel in Zambia has nothing to do with the drop in prices of the commodity on the international market The price of fuel on the international market came down but at the same time the Kwacha depreciated. My guess is that the Kabwata by elections has every thing to do with the so called reduction. Come March the price will go up by K 2.00.

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  8. Flip flop pricing of this commodity is not good. You won’t catch up with the pricing dynamics and turbulences that goes with fuel.
    Stable economies require stable pricing for fuel. Now this is the cipante pante people talk about. Is Hachilema now experimenting with our economy? Who does that? Today, you wake up nababwesha; tomorrow, you wake up nabalunda. Its a pendulum economy bakamba, hachilem na misokotwane team. Kukosa. How can a Kabwata bye election cause this imwebantu sure?

  9. #12 Mwine Munzi. My take exactly. Unless we have another by quickly, these guys will increase by four Kwacha to recover this loss. Put this in your diaries.

  10. There need for new approach in the procurement of oil and fuels With current events in Russian and Ukraine sanctions to euro and inner will result in oil supply bottlenecks or disruptions If that happens oil and Gas my trade between a 100 USD per barrel to 150 USD per barrel as those region as global supply will be from other sources apart from Russia Demand in the east and west traditional oil field and refineries will rise exponentially to cause stress our countries of imports with weak reserves and balance sheets So without Futures and forward contracts of delivery to reserve fuel OMCs from Tanzania deliveries will cause prices to rise again

  11. Well done GRZ. A little breather is better than no breathing at all. Fuel prices are continually going up internationally. Here in Namibia where I reside, prices of fuel went up twice in january. So there is no subject to discusss here.

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