By Patricia Male/Balewa Zyuulu
Energy expert Johnstone Chikwanda says the announced reduced fuel pump price by the Energy Regulation Board –ERB-will save consumers about K150 million combined with the month of May 2022.
And Mr. Chikwanda has encouraged government to continue pursuing measures which will enhance fuel security and better prices, which will in turn reflect in the price of other commodities and transport charges.
In welcoming the reduced fuel pump prices by K2.35 ngwee by the ERB in the latest fuel price review, Mr. Chikwanda has attributed the reduction in prices to the appreciation of the kwacha against the us dollar and reduced crude oil prices on the international market following the intervention by the United States of America which is discharging fuel from its strategic petroleum reserves.
Mr. Chikwanda however says this is a temporal measure as the U.S cannot afford to deplete its strategic reserves for security reasons and will start restocking its strategic reserves thereby increasing demand for crude oil.
He adds that the situation on the global market still remains volatile due to the ongoing war between Russia and Ukraine and sanctions on Russian crude oil and refined fuel and calls for diplomatic efforts to continue to ensure a de-escalation of conflict is achieved and sanctions removed.
Meanwhile, Social Economist Kelvin Chisanga says the fluctuations being seen in oil prices on the international market will keep on oscillating between the gains and losses due to the sustained uncertainty, which has remained a key downside risk based on the assessment of global economic growth and its related projections.
He explains that oil prices have drastically reduced in the global pricing structure by a margin of about 6% mainly due to low demands emanating from china, and this led to some slow patterns observed in the movements of trade and commerce.
Mr Chisanga says the kwacha’s current moderate movements have strongly signified a very good positive outturn on many key economic fundamental factors as can be seen and yet to witness good transmission channel in prices of goods and services.
PHOENIX NEWS