By Mubanga Mubanga
The Energy Regulation Board (ERB) has adjusted downwards the price of petrol from K34.19 to K31.12 effective midnight.
The price of diesel has been reduced to K28.78 from K32.15 and the price of JET A 1 has been reduced to K28.23 from K32.69 while the price of kerosene has maintained at K20.44.
In press a statement, ERB chairperson Reynolds Bowa explained that during the February 2024, the significant appreciation of the Kwacha outweighed the increase in international oil prices and warranted a reduction in the domestic wholesale pump prices of petroleum products.
Bowa stated that the price of kerosene had been maintained and the decision on its pricing would be reviewed consistent with the national supply and demand situation.
“Based on the foregoing, the prices for petrol, diesel and JET A-1 have been adjusted downwards to K31.12/ liter, K28.78/litre and K28.28/litre respectively. The price for kerosene has been maintained at K20.44/ litre,” stated Bowa.
He stated that over the review period, the Kwacha significantly appreciated against the United States Dollar.
“On average the exchange rate appreciated 14.48 per cent. The appreciation was mainly attributed to interest rate hike by the Bank of Zambia (BOZ) and the directive that commercial banks hold back more funds in reserve. Furthermore, BOZ made available additional United States Dollars to the market,” He stated.
He stated that during February 2024, the prices of oil on the International market increased.
Bowa stated that the increase was mainly attributed to supply disruptions arising from geographical tensions in the Middle East which led to tightened supply of the commodity.
He stated that this was worsened by the persisting Red Sea risk on oil shipments that were voyaging along this route.
