By Daily Revelation Editor
The Energy Regulation Board (ERB) on Monday maintained the price of petrol at K34.98, kerosene and Jet A-1, while reducing the price of diesel from K32.54/litre to K30.23/litre.
ERB board chairperson James Banda attributed the reduced price in diesel to the implementation of the TAZAMA Open Access, which allowed multiple players in the petroleum industry to utilise the pipeline for diesel production.
He further explained that as the Open Access takes full effect on April 01, 2025, premiums on diesel may change on a monthly basis due to the competitive bidding process.
While the decline in diesel is appreciated, many expected a more significant reduction not only in diesel prices, but the other petroleum products following the bullish remarks prior from the minister of Energy Makozo Chikote.
What should be drawn conclusively from all this is that the price of petroleum products is still very high, even at the reduced price of K30.23 for diesel, and will continue to put more strain on the Zambian people, who are every day bearing the brunt of the escalated cost of living, owing to high fuel prices on the local market.
It is sad to note that the country is consistently failing to benefit from the times when international oil prices reduce.
For example, Banda said since the last fuel price on February 28, 2025, the international oil price of petrol declined by 7.6 percent, from US$82.36 per barrel to US$76.38 per barrel, and whereas diesel declined by 6.85 percent, from US$89.58/bbl to US$83.44/bbl, the Zambian Kwacha depreciated against the United States Dollar by 0.98 percent from K28.78/US$ to K29.07/US$ during the same period.
This is something that has been ongoing for a considerable period now where the lower international prices are always being offset by the weakening local currency, which embarked on this downward slide around October 2022. One would have expected that those who are in charge of running the affairs of this country would have found means to address this matter for the benefit of the public.
Definitely, the government cannot expect to address the high cost of living in an economy where key fundamentals such as the local currency is unstable, depreciating often, and where the price of fuel is expensive.
It surely doesn’t help especially when the government have announced that they are pursuing a contractionary fiscal policy, which despite being aimed at curbing inflation and preventing unsustainable economic growth by reducing the amount of spending in the economy, will nevertheless result in higher taxation by reducing disposable income, leading to lower consumer spending and investment. It’s difficult how the citizens will be expected to buy the same expensive fuel given this scenario.
A depressed economy such as the one in Zambia needs increased government spending in the economy.
Besides that, the government has been on a drive to encourage more investment into the economy. But the results so far, especially from the mines have been anemic, amid assertions that the sale of some major mining houses was not properly handled, hence affecting their overall effectiveness and contribution to the local economy. Something serious needs to be addressed to alleviate the huge challenges being faced by Zambians.
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By Daily Revelation Editor
The Energy Regulation Board (ERB) on Monday maintained the price of petrol at K34.98, kerosene and Jet A-1, while reducing the price of diesel from K32.54/litre to K30.23/litre.
ERB board chairperson James Banda attributed the reduced price in diesel to the implementation of the TAZAMA Open Access, which allowed multiple players in the petroleum industry to utilise the pipeline for diesel production.
He further explained that as the Open Access takes full effect on April 01, 2025, premiums on diesel may change on a monthly basis due to the competitive bidding process.
While the decline in diesel is appreciated, many expected a more significant reduction not only in diesel prices, but the other petroleum products following the bullish remarks prior from the minister of Energy Makozo Chikote.
What should be drawn conclusively from all this is that the price of petroleum products is still very high, even at the reduced price of K30.23 for diesel, and will continue to put more strain on the Zambian people, who are every day bearing the brunt of the escalated cost of living, owing to high fuel prices on the local market.
It is sad to note that the country is consistently failing to benefit from the times when international oil prices reduce.
For example, Banda said since the last fuel price on February 28, 2025, the international oil price of petrol declined by 7.6 percent, from US$82.36 per barrel to US$76.38 per barrel, and whereas diesel declined by 6.85 percent, from US$89.58/bbl to US$83.44/bbl, the Zambian Kwacha depreciated against the United States Dollar by 0.98 percent from K28.78/US$ to K29.07/US$ during the same period.
This is something that has been ongoing for a considerable period now where the lower international prices are always being offset by the weakening local currency, which embarked on this downward slide around October 2022. One would have expected that those who are in charge of running the affairs of this country would have found means to address this matter for the benefit of the public.
Definitely, the government cannot expect to address the high cost of living in an economy where key fundamentals such as the local currency is unstable, depreciating often, and where the price of fuel is expensive.
It surely doesn’t help especially when the government have announced that they are pursuing a contractionary fiscal policy, which despite being aimed at curbing inflation and preventing unsustainable economic growth by reducing the amount of spending in the economy, will nevertheless result in higher taxation by reducing disposable income, leading to lower consumer spending and investment. It’s difficult how the citizens will be expected to buy the same expensive fuel given this scenario.
A depressed economy such as the one in Zambia needs increased government spending in the economy.
Besides that, the government has been on a drive to encourage more investment into the economy. But the results so far, especially from the mines have been anemic, amid assertions that the sale of some major mining houses was not properly handled, hence affecting their overall effectiveness and contribution to the local economy. Something serious needs to be addressed to alleviate the huge challenges being faced by Zambians.
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