GOVT BLAMES CHINA FOR HIGH FUEL PUMP PRICES
… as ERB says the increase in fuel was as a result of China reopening its economy and sanctions on Russia
By New Dawn Reporter
GOVERNMENT says the decision by China to open its economy to the world has resulted in a high cost of fuel on the international market and Zambia in particular.
Addressing the media this afternoon during its monthly fuel pump price review programme, Energy Regulation Board (ERB) Board chairperson, Reynolds Bowa said the increase in oil prices during the month of January, 2023, was as a result of rising travel demands from China’s reopening of its economy.
“The increase in oil prices during the month of January, 2023, was attributed to optimism about the rising travel demand from China’s reopening its economy and continued sanctions on Russian products. In addition, reduced supply of petroleum products on the market is anticipated owing to limited refinery outputs as most refineries are expected to conduct their scheduled maintenances during the first quarter of 2023,” Bowa said.
Bowa also attributed the increase in fuel pump price to the depreciation of the Kwacha against major foreign currencies.
According to the ERB board chairman, the Kwacha depreciated against the dollar from K17 to K18.
“During this price review period, the exchange rate depreciated from K17. 61 per dollar to K18. 90 per dollar representing 7.33 percent. The depreciation was mainly attributed to extended time line in the discussion to restructure the external loans, resulting into reduced supply of foreign exchange on the market against increased demand. The combined effects of the two factors which the exchange rate and the international oil prices has resulted in the upward adjustment in the prices for petrol, diesel, kerosine and jet a1 which were all above the 2.50 percent wholesale price trigger band,” he said.
He said that effective midnight petrol will now be selling at K27.73 from K24.49 per litre, while diesel will now cost K29. 25 from K26.44.
