Fuel hikes are based on cost plus model – Langiwe

The Energy Regulatory Board (ERB) has explained that the adjustments that have been made to the pump fuel prices in the Country are based on its cost plus model.

ERB Executive Director Langiwe Lungu says it is within the ERB’s mandate to ensure that it prices all petroleum cargo and finished goods using the cost plus model.

Ms. Langiwe has told QTV News that this means that all the cost in the supply chain of the pump fuel being sold on the Zambian market will be covered in the set prices.

She says this also entails the last cargo of petroleum cargo and finished goods that entered the Country will be sold on a profit.