Fuel prices to reduce effective midnight

The Energy Regulation Board (ERB) has announced that effective midnight, fuel pump prices will be reduced.

Petrol has been reduced from 13.70 to 12.50 per liter, Diesel from 11.40 to 10.72, Kerosene has being reduced from 8.03 to 6.81 while low sulphur gas has reduced from 13.69 to 13.01.

ERB Vice Chairperson Professor Francis Yamba has told Journalists that the Board has reduced fuel pump prices by K1.20 for petrol, while diesel and low sulphur gas have been reduced by 68 ngwee and K1.22 for kerosene.

Professor Yamba says the pricing of petroleum products sold in Zambia affected by movements in oil prices on the international market and the exchange rate of the kwacha against the US Dollar.

He explains that fuel prices are viewed using the cost plus model, each time government imports crude feedstock and finished petroleum products saying in order to stabilize fuel prices are only revised when computed wholesale fuel price adjustment exceeds the 2.5 percent threshold.

Professor Yamba says the rising trend in international oil prices, in October 2016, will likely continue well into 2017 due to the decision by OPEC to cut production for the first time in eight years.

And Professor Yamba says the Board remains committed to consistently monitor and review fuel prices to minimize consumer price shocks as well as compel service providers to deliver quality service.

He however disclosed that fuel prices will accordingly be adjusted downwards or upwards as and when the fundamental dictate.

And speaking at the same event ERB Executive Director Langiwe Lungu has warned Oil Marketing companies to heed to revised fuel prices failure to which they will be penalized.