KWACHA STRENGTH BRINGS DOWN FUEL PRICES

By Scoop Reporter

THE Energy Regulation Board (ERB) says the recent trends in international oil prices and the performance of the Kwacha against the United States Dollar have necessitated the downward fuel price adjustment.

In line with the monthly pricing cycle which commenced in January 2022, the (ERB) has today revised downwards the fuel pump prices by K2.35/litre on Petrol, KO.58/litre on Diesel and Ko.56/litre on Kerosene.

“In that regard, world crude oil prices recorded a downward trend mainly on account of the drop in China’s demand for oil due to new pandemic restrictions. In addition, during this period, countries with oil reserves intervened by offloading stocks onto the international market.

“Consequently, this helped to relatively stabilise the global prices which averaged US$103/bbl for crude oil and US$133/bbl, for finished products. The Kwacha, on the other hand, recorded marginal gains against the United States Dollar (US$), appreciating from an average of K18.09/US$ at the last price review to an average of K17.38/US$ as at 27″ April, 2022,” reads a statement from ERB.

These prices take effect this mid-night, April 30, 2022.

2 COMMENTS

  1. Good morning economists,
    I am an uneducated person but I spend as good as you knowledged fellas. Really understand this gains of kwacha, inflation and other financial transactions apart from spending the income.
    I want to base my questions on three things fuel against sugar and fare.
    1) fuel increased by K4 and the sugar increased by K10 as if a liter carries one packet of sugar, yet on a liter of fuel you ll load 1000 packers, so my question what method is used to to reach the K10 increment of this commodity.
    2) increment of fuel diesel 3.86 and then an individual ticket Lusaka to nakonde is increased from 300 to 380. A big bus is a 75 seater hence a full bus gives the transporter K28,000, now we take out fuel 300 liters 7,800, less wages, ware, loads 5,000 Council 2,000 and toll plaza 2,000 total expenses K16,800 leaving the transporter a total if K12,000 on half a trip so on return it’s give him K24,000 plus if you add language isn’t this exploitation of the of poor people.
    Mr HH you are an economist sir kindly leaving the country on free market economy but put in some price control mechanism where the middle is making more than necessary. These are the people devaluing the kwacha. He claims he reads what is posted on social media and other economists please helpe and others like me understand.

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