By PERPETUAL SICHIKWENKWE –
THE Energy Regulation Board (ERB) has announced a further reduction in the pump prices of petrol, diesel and kerosene.
Zambia is poised for more downward price adjustments in fuel prices if the falling trend in international oil prices coupled with a stable or appreciating Kwacha continues.
Petrol will now be costing K9.89 from K10.38, registering a reduction of K0.49, diesel is K9.19 from K9.73 with a reduction of K0.54, while Kerosene has been reduced from K7.22 to K6.77 posting a reduction of K0.44.
ERB Board chairperson Geoff Mwape said the reduction in the pump prices was effective from midnight today.
Pastor Mwape said this in a statement by ERB legal counsel Chimba Mumba at a media briefing yesterday.
The Government was hopeful that if the falling trend in international oil prices was assisted with a stable or appreciating Kwacha, the nation was set for more downward price adjustments.
He said ERB had a pivotal and critical mandate to ensure that it determined petroleum prices that guaranteed full cost recovery for the Government as the procuring agent and all players on the upstream and downstream.
Pastor Mwape called on TAZAMA, INDENI, Ndola fuel terminal, Oil Marketing Companies, transporters and dealers to operate viably with reasonable return on capital employed.
He said this would ensure the desired security of supply of petroleum products.
In April, ERB effected a change to the pump prices based on cargo procured in February this year, which had an exchange rate of K5.90 per United States dollar which was above the 2.5 per cent trigger.
On November 28, ERB effected another price reduction in petroleum products based on the cargo that was procured in August just before international oil prices started to fall significantly.
This meant that between the April and November adjustment, the exchange rate depreciated by eight per cent while the unit price between March and August 2014 moved only marginally downwards.
Pastor Mwape said that in September, the Government procured feedstock when the international oil prices had continued to fall and the feedstock docked on December 1, with an exchange rate associated to the cargo being K6.38 per US dollar.
He said the cost of the latest procurement had fallen by a significant margin, which had triggered a price review to reduce further the fuel pump prices.
Pastor Mwape said the next price review would be done after the latest cargo was fully exhausted.