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ERB hikes July fuel prices

• Upward adjustment is due to the increase in oil prices on the international market.
• Increase in oil prices on the international market was mainly as a result of the global oil demand and supply imbalance.
• New petrol price is now K26.75 ngwee, low sulphur diesel K28.01 ngwee and kerosene K21.27 ngwee.

Energy Regulation Board (ERB) has adjusted upwards prices of petroleum products by K1.80 ngwee per liter for Petrol, K2.37 ngwee per liter for diesel and K2.51 ngwee per liter for Kerosene.
Speaking at a media briefing, Board Chairperson Reynolds Bowa attributed the upward adjustment to the unprecedented increase in prices of petroleum products on the global market.
Engineer Bowa stated that the recorded increase in oil prices on the international market was mainly as a result of the global oil demand and supply imbalance caused by a combination of factors such as the continued Russia-Ukraine war and increased oil demand worldwide among others.
He said this has caused premium demands on both product prices and freight costs, putting pressure on the landed cost of imported petroleum products, adding that prices of petroleum products on the local market have all surpassed the threshold for upward price adjustment.
Engineer Bowa explained that in the last price review, the average international oil price for Petrol was US$133.80 per barrel compared to US$148.59 per barrel, representing a movement of 11.06 percent.
“Likewise, the price for diesel was US$147.35/bbp compared to US$167.44/bbp representing a movement of 13.64%.In the case of kerosene the price was US$134.79/bbp compared to US$156.45/bbp representing a movement of 16.07%.
“Meanwhile, the Kwacha recorded marginal gains against the United States Dollar and marginally appreciated from a monthly average of K17.11/US$ in May to K17.04/US$, in June, 2022. However, the rise in international oil prices far outweighed any gains the marginal appreciation of the Kwacha had on domestic market pump prices,” Engineer Bowa stated.
Engineer Bowa revealed that the new petrol price is now K26.75 ngwee from K24.95, low sulphur diesel K28.01 ngwee from K25.64 ngwee and kerosene K21.27 ngwee from K18.76 ngwee.

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