Oil Marketing Companies Association of Zambia (OMCAZ) has that that it is projecting at least a 2 percent upward adjustment in fuel pump prices at the impending review following the rise in crude oil prices on the international market to $97 per barrel.
The OMCs also cited the slight decline in the strength of the kwacha against major convertible currencies in addition to the Russian-Ukraine tensions that have negatively affected the price of crude oil on the international market.
OMCs Association President Dr. Kafula Mubanga has since suggested that government considers re-introducing fuel subsidies to reduce prices of diesel and petrol on the market, encourage private investments into fuel pipelines including between Mozambique and Zambia in order to cut down on the cost of transportation by almost 60 percent.
Dr. Mubanga has disclosed that OMCs have already secured over $25 million to invest in the creation of a pipeline between Mozambique and Zambia to lower the cost of transportation but also calls on government to consider the option of regional agreements to start accessing finished petroleum products directly from India.
And Energy Expert Boniface Zulu says the increase in crude oil on the international market is likely to affect Zambia. Commenting on crude oil price that is likely to hit $100 per barrel by the end of this week according to experts, Mr. Zulu says it is high time Zambia starts embracing electric mobility so as to cushion the over dependency on fuel.
We hope the nuclear negotiations with Iran are successful…………
After COVID the world economy , does not need tighter oil supply……..
The US knows this, let’s hope they lift sanctions on Iran………..
It will be difficult to plan if the fuel price will act like a yoyo. You should have left the price at 21 Kwacha so that there wouldn’t be need to increase if the barrel price rises or falls.
Wow……..
Putin has escalated the conflict in Ukraine by attacking Ukrainian military sites in Ukraine, confounding many observers , including myself………..
May people expected the declaration of independence for territories of Russian majority citizens in regions of Eastern Ukraine to end the conflict………..
But Putin has now cited the threat of NATO expansion to Russian boarders as the reason for the military action Russian has unleased against Ukraine
The monthly review of Fuel Prices is not making sense. How does one plan?
I think the risks in procuments methods were seen to be many now impacting It’s wiser to lock in the price and avoid it spike out of control beyond an average price of say Petro pump price of. K18 per litre given that the price of crude could rise further and trade in the target range of a $100 to $145 per barrel Assuming market pricing could see Petro l pump price rise to K25 to K35 as dd is surging with supply constraints per day and opec countries wishing it trades in a price mark of $100 and not extending productivity by reinvesting ,giving price gains to shareholders in buy backs In short the pump price is likely to increase and how you hedge as Gov is matter of priority before they revert
Inflation could also be an issue to model and manage now because the opec capacity of below 300000 per barrel with increased daily demand of 150000 billion per barrel is pointing to a price of $100 to $145 and there is little productivity and spare capacity to increase production by opec countries in the short-term So with little reserve management in procuments it’s important to lock in the price and insulate the risks in price and supply chains and manage the eventualities
The reaction is now in the other 14 opec member countries that is important and weekly to monthly Chang’s in supply and demand dynamics but it’s already $100 per barrel and they are not meeting to discuss productivity and price sustainability Fuel reserve management and secure methods in procuments have if you could have hedged potential gains are many over a tick price movement either because the margin variations in price and volumes are a risk either to you including moving on trucks without Indeni
2% to 4%. Extrapolate to millions and see the price range in supplies per barrel He is bring conservative 2%.Price have moved on average of 4% to 7% from markets to our regions here beating the mark of $100 With EU in the Iranian and Saudi may be Niger or Angola in open markets spot as it quick assurance to lock in will reserve
It’s also an opportunity presented to startergise for long-term procurements sustainable methods including working out fuel pipe line and technologies at Indeni DIESElNET on how to transition technologies at Indeni quickly and cheaper and take advantage of regional supply sites like Angola Nigeria and Mozambique to reserve and cheaply If EU is looking to fill the 40% deficits created by the Russia from Africa n markets including others why not take advantage and work out the sector to not only consume but participate to create productivity for longterm especially with that refinery nearer to mozabique
The price of oil is now US$100, the the highest in seven years. So watch the space!
Chances of performance failure SECTORIAL for the gov are many from energy water health finances economics minning and social including foreign we hope to see as it to there is no area that has differentiated to set course the better they realise eminent failings better The Outlook is not good including local government including fiscal dispite talks and budgets okay gone
Indicators are weak and bad going into 2026
Okla are already in moza Niger and Angola in sinopec a fortunately also
There is little growth arrears apart from spending methods and management The outlook is worse on all economic indicators forward looking that must be realised and seriously managed The ratings from rating agencies has also been downgraded post elections showing expectations now on government and economy let’s see how they reports are and see the reasoning. It now better than never to realise and reposition without any face
It is obvious fuel price is going up as it is beyond our control.
No no we still have other exporting commodities to leverage and manage the downgraded including goverment economic stratergies and i think it’s serious those ratings must be managed with real efforts not business as usual otherwise s it is you have failed given financial conditions Economies and stratergies in place even to 2030. It’s not releasing and spending but fiscal consolidations from growth areas because it’s elevated even with IMF budgetary support at current growth level in the MFTs