Fuel Prices Hiked By ERB


THE Energy Regulation Board (ERB) has announced an upward adjustment of fuel price increases with a litre of diesel now selling at K23.36 from K21.87.

 The price of a litre of petrol has also been increased from K24.93 to K25.57 while kerosene will now be K20.44 from k18.53 alitre.

ERB board chairperson Reynolds Bowa said during a monthly press briefing that the upward adjustment are effective midnight.

He also took time to explain reasons behind the upwards adjustment, among them, the inescapable increase in international oil prices.

“The main drivers for the changes in petroleum prices are the movements in international oil price and the exchange rate.

“The price of oil on the international market, between the July 2023 and the current price review for August, 2023 has increased. Specifically, the average prices of Petrol; Diesel; and Kerosene increased by 3.50%, 7.57% and 6.97% respectively,” Mr Bowa said.

“For the August 2023 price review, Petrol changed from US$83.66/bbl to US$86.59/bbl, Diesel changed from US$86.91/bbl to US$93.49/bbl and Kerosene changed from US$86.09/bbl to US$92.09/bbl”.

He said the increase in oil prices is attributed to speculation of potential global supply deficits. This is following the announcement by the Organization for the Petroleum Exporting Countries and its allies (OPEC+) that there will be oil production cuts soon. 

“The announced oil supply cuts is happening when there is a steady increase in demand, following the on-going global economic recovery, post the COVID-19 pandemic. The increasing trend in global oil prices is consistent with increasing prices of major commodities in reaction to prospect of interest rate hikes in major global economies,” Mr Bowa said.

He said in the latest price review period, the exchange rate of the Kwacha to the United States Dollar depreciated from K17.73/US$ to K18.51/US$, representing 4.35%.

“The depreciation of the Kwacha continues to be mainly driven by the demand for foreign exchange outstripping the supply. Despite the positive outlook resulting from the conclusion of the debt restructuring programmer the Kwacha reaction is slow because it continues to face persistent inflationary pressures,” Mr Bowa said.

(Mwebantu, Monday, 31st July, 2023)



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