The continued high prices of crude oil on the international market will potentially result in another fuel price hike at the end of April beyond the current prices with such trends anticipated to sustain over the next few months.
The Oil Marketing Companies Association of Zambia is anticipating around a 1 to 2 percent fuel hike at the end of April when the Energy Regulation Board (ERB) reviews fuel pump prices while the conflict in Ukraine sustains negative effects on international pricing mechanisms.
Association President Kafula Mubanga tells Phoenix News that the sustained war in Ukraine will continue to negatively affect the pricing of fuel in zambia especially that the country has no control over international pricing mechanisms.
The current price of crude oil on the international market is over $108 per barrel while the local price for petrol was last increased to K26.50 from K21.96 previously and diesel up to K26.22 up from K21.54 with both signaling an increase of over K4.50.
And on recent revelations by Energy Minister Peter Kapala that government will remove all remaining subsidies and waivers on fuel by the end of June 2022, Dr. Mubanga is confident that government has conducted a thorough analysis to determine that the benefit of doing so would outweigh the losses especially with the anticipated impact on ordinary citizens.
Meanwhile, Agro-economist Frank Kayula has anticipated an increase in the price of fertilizer to over k1000 per bag as a result of the ongoing Russia-Ukraine war which will affect Zambia’s food security.
Dr Kayula in an interview with phoenix news says this will also likely see increased prices of seeds on the market which will disadvantage farmers.
Dr Kayula says once price of seeds go up, it has the potential to affect beneficiaries of the farmer input support program which and result in government reducing the number of beneficiaries on the program.
He has however advised government to consider enhancing the use of sustainable agriculture and organic fertilizer in order to ensure nutrients are given to the soil to maintain productivity as one way to cushion the impact the war in Russia and Ukraine has on the agriculture sector.
The tonga God…aka…Barry will fix it. Fertilizer to cost K100 per 50kg bag.
Let’s wait until the time comes
It looks like this government has no solutions. If this war takes 2 years to end, what will be the price of fuel and other commodities.
Rwandan president Kagame said this is the time to cushion lives of ordinary citizens. Can the new doom government start looking for solutions instead of blaming Ukraine-Russia war.
The f00Is that voted hh in are also suffering but because of tribal t.o.ng.a pride most of them won’t criticize this government for failing them. Ignorant
I saw the interview some points well but stratergies weak There are w number of Macroeconomics or outcomes that are shaping the procurement and price of oil towards the end of the year for Brent gasoline crude oil paraffin jet fuels and diesels including industrial propane Physical and financial markets included Oil and Gas prices are significantly very important in the social economical performance and developmental for the Zambian economy oil and gas works and powers the economy and therefore procuments methods and price flactuations can have counter cyclical effect and significant cause of Inflation and unemployment in the sectors and a direct impact on the poor local Economies It’s difficult to see the implications of those stratergies and procuments methods including pricing…
@2 Henry
Good observation …so in short if Ukraine war last 10 then Zambians will starve to death except for UPND Ministers and their Demagogue President HH
That could reduce the price of oil and gas significantly the drop is as a result of short-term us reserves and also some oil from Russia finding a physical place of delivery in Saudi Arabia India and China out of Sanctions Managing the fuel procurements by Gov and in long-term reserve management will also also grow and create Stratergic positioning of Investments and exploration of oil and gas remember also that we are an importing country inland like Somalia or Burundi or Angola we need to see a long-term Stratergic plan that will work in the oil and gas sectors The fragmentation of world economies now will also have an impact on Inflation and hence local Financial stability could be at significant risk exposure you manage what you can foresee and the actions now points to what you…
I think this is a known issue and we expected different results
It’s interesting how life is.Villagers can afford to travel everywhere and eat well.That’s why they voted the way they did. What more a fellow in town?
Rather than give hope to the people as leadership should ordinarily do, our government does the opposite
It’s New Dusk administration.
BIG PICTURE and some facts before you continue with your criticism:
THE USA: Since the Russian invasion, the average price of regular gas in the US has increased by 17%. It is up 23% from the beginning of the year. On Tuesday alone, the average price of a gallon of regular rose 8cents, to $4.25 from $4.17 and it’s much higher in states like California, where a gallon of regular cost $5.57, on average. More price increases, and big ones, are already inevitable.
THE UK: The annual rate of inflation shot up to a fresh 30-year high of 7% in March reflecting, for the first time, the immediate effects of Russia’s invasion of Ukraine: Goods – 21.3%, Services – 15.5% , Food – 4.3%
I got myself an electric car, and I am charging the batteries with my solar system. I truly hope they TRIPLE the fuel prices!
Surprisingly, the people who were rubbishing my (and a few others here) call on the expected increase of prices as a result of the uncalled for war between Russia-Ukraine, are now either silent or continue to blame this government and demand that the GRZ fix the issue asap. Let me make another call, this is an oil crisis that Zambia can not resolve in isolation due to 1) the country being broke (no money), hence can’t subsidize, and 2) It’s a crisis, with dependence on the international market and advanced countries stabilizes oil prices stabilizing.
The bad news: It is expected world oil prices to rise to $150 a barrel — an increase of more than 20% — In the US, that would translate to about average of $5 per gallon (from $4.25). In Zambia, that could go up to K30, These are the…
Cont
The bad news: It is expected world oil prices to rise to $150 a barrel — an increase of more than 20% — In the US, that would translate to about average of $5 per gallon (from $4.25). In Zambia, that could go up to K30, These are the Effects of PF GRZ and Russia war, not sure this government is capable to resolve.