• Changes in the cost of petroleum products are as a result of uncertainties of crude oil prices on the international market.
• International Oil price outlook was greatly influenced by the China Covid 19 situation.
• Price of Jet A1 fuel at Kenneth Kaunda International also hiked.
Energy Regulation Board (ERB) has increased fuel prices for December, 2022 by K1.58 ngwee per litre for Petrol, K1.22 ngwee per liter for Kerosene, while the price of low Sulphur diesel remains unchanged.
Addressing the media, Board Chairperson Reynolds Bowa said the Board has further adjusted upwards the price of Jet A1 fuel at Kenneth Kaunda International Airport by K1.45 per litre.
Engineer Bowa stated that the changes in the cost of petroleum products are as a result of uncertainties of crude oil prices on the international market and the depreciation of the Zambian Kwacha against the United States dollar.
“At the last review which yielded the November 2022 fuel prices, the average prices of petrol, diesel and Kerosene were US89.32 per barrel, US128.80 per barrel and US$116.61 per barrel respectively compared to US$94.45 per barrel, US$127.60 per barrel and US118.97 per barrel respectively for the current price review. The movements in prices represent a rise of 5.75 percent and 2.02 percent for petrol and Kerosene, Meanwhile diesel recorded a decline of 0.93 percent,” Engineer Bowa explained.
Engineer Bowa noted that the International Oil price outlook was greatly influenced by the China Covid 19 situation which clouded the outlook for global energy demand and added more stress in an already –fragile global market.
“The behavior of the international oil prices was further affected by mounting fears of global recession and speculation of further oil supply restrictions by OPEC+ countries. Generally the international petroleum products market is still considered fragile and unpredictable,” he added.
“In line with the ERB pricing mechanism, the combined effect of the changes in two factors which are International oil prices and Exchange rate, it has resulted in upward changes in prices of petrol ,Kerosene and Jet A-1 which were above the 2.50 percent wholesale price trigger band. Meanwhile, the wholesale price for diesel is below the 2.50 percent threshold and therefore, there will be no changes,” he said.
Engineer Bowa stated that Petrol is now selling at K25.31 Kerosene at K20.45 and Jet A1 fuel at K21.78.
He further noted that there are several steps that Government has taken to cushion fuel prices on the local market such as the construction of an oil pipeline from Tanzania to Ndola.