Q FM Africa's Modern Radio
The Energy Regulation Board (ERB) says fuel pump prices would have further gone up had government not intervened by forgoing certain taxes as a way to cushion consumers.
ERB Acting Director Consumer and Public Affairs, Nasima Shaikh tells Q-News that government weaved the 25% import duty and value added tax vat on imported fuel by oil marketing companies OMCs, adding that the exercise duty has further been reduced on petrol from k2.7 ngwee to 64 ngwee per liter.
Ms. Shaikh explains that the dynamics of importing crude oil have changed, stating fuel is coming into the country as already processed finished product on a continuous basis which requires monthly reviews because international oil prices are continuously going up.
She says Zambia is no longer importing crude oil that could take a period of 60 days to refine and price the commodity for the market before the next consignment.
Some stakeholders have been calling on the ERB to revert to the quarterly review of fuel pump prices.
And Ms Shaikh says there is a strain on the supply of oil globally owing to the geopolitical tension between Russia and Ukraine, which has affected Zambia and is not giving a clear future outlook in terms of stability of fuel prices.