Fuel Prices go Up Again in 5 Months
By Staff Reporter
The pump price of fuel has been adjusted upwards with effect from midnight.
According to a statement by Energy Regulation Board (ERB) chairperson Raymond Mpundu today a litre of Petrol has been increased from K12.97 to K13.75, Diesel K11.09 to K12.01, Kerosine K7.82 to K8.85 and LSG K13.38 to K14.30.
Mpundu announced that it was inevitable to make the adjustment due to changes in two main variables that influence the price of the commodity
Mpundu stated that oil prices had increased on the international market while the local currency, the Kwacha had depreciated by about 2.15% since the last adjustment in October last year.
“Specifically, from the last price adjustment on 17th October 2017, Murban crude oil prices per barrel increased by 9.04% from US$58.10/bbl to US$63.35/bbl in November 2017, reaching US$64.85/bbl by December 2017,” read the statement. “Of the two fundamentals, the international oil price has been the most volatile and is the key driver for this price adjustment. Notably, prices have remained stable since October 2017”.
He said it had been five months since the ERB last adjusted the pump prices and therefore should be noted that in order to ensure cost recovery following the removal of subsidies on fuel prices, and the policy of periodic reviews of fuel prices, the board had determined that prices be revised.
“The price adjustment of less than K1.00 per liter for all the petroleum products except Kerosene is inevitable in order to maintain the security of supply. The ERB will endeavor to work jointly with other stakeholders to explore avenues for maintaining price stability and possibly lower prices whilst maintaining price recovery,” stated Mpundu.
The last price adjustment in fuel prices in October brought about tension between government and bus operators who wanted to pass on the cost to the commuters.
