ENERGY CONSULTANT SAYS LOCAL FUEL PUMP PRICES DROPPED BY AN AVERAGE 27% THE PAST 12 MONTHS
By Chamuka Shalubala
Energy Consultant Dr. Johnson Chikwanda says fuel pump prices in the country have fallen significantly over the past year despite international fuel prices declining at a slower pace.
Dr. Chikwanda says while prices on the global market dropped by an average of 14 percent, local pump prices fell by a combined average of 27 percent.
He attributes the bigger reduction mainly to the strong performance of the Zambian Kwacha saying the currency appreciated by more than 30 percent over the last 12 months, helping to reduce the cost of fuel imports.
He adds that the open access policy on the diesel pipeline also played a role, contributing an estimated five percent to the overall reduction.
On fuel consumption, Dr. Chikwanda says diesel consumers saved an estimated K2.0 billion over the past year, while petrol users saved about K647 million.
He further indicates that international fuel prices are expected to remain relatively weak in the coming months, adding that if the exchange rate remains stable or improves further, fuel pump prices are unlikely to rise sharply unless there are major changes on the global market.
PHOENIX NEWS