Q FM Africa's Modern Radio
The Energy Regulation Board (ERB) has announced an increase in fuel prices effective midnight tonight.
Announcing the increase, ERB board chairman Raymond Mpundu says the new petrol price will be k16.06 per liter from k13.75,diesel will now cost k14.65 per liter from k12.01 with kerosene increasing to k11.34 per liter from k8.85 while low sulphur gas will now cost k16.94 per liter from k14.30./
Mr. Mpundu has attributed the increase in fuel prices to changes in the fundamentals that determine fuel prices.
He says the key drivers for the price review are the international oil prices and the exchange rate of the kwacha against major trading currencies, especially the us dollar.
Mr. Mpundu states that the price review is based on the cost plus model used to determine fuel prices.
He points out that since the last fuel adjustment on 12th february,2018,the price of petrol rose by 10.28% from an average of us$74.94 per barrel in February 2018 to an average of us$82.62 per barrel in august 2018.
Mr. Mpundu further states that since the last price adjustment, he kwacha depreciated by 7.89 percent from a monthly average of k9.89 per dollar in February to an average of k10.67 per dollar in September 2018.
He says the upward movement in the price of crude oil and prices of finished products on the world market as well as the depreciation of the kwacha against the us dollar have resulted in an increase in the fuel importation bill for the current import consignment in kwacha terms.
And Finance Minister Margaret Mwanakatwe has told parliament that it’s investable that excessive depreciation of the kwacha may result in adjustments in prices of goods and services and elevated levels of inflation.