• Zambia’s fuel pricing is based on month minus one.
• November 2022 pricing is slightly higher than October pricing by about US$15.
• The Kwacha has also moved from an average of K15.80 ngwee to over K17.
An Oil Marketing Company says fuel pump prices for December 2022 are likely to increase despite a slight reduction in Crude oil prices on the international market.
Speaking in an interview with Money FM News, Company Managing Director Chomba Gondwe said this is because Zambia’s fuel pricing is based on month minus one and November 2022 pricing is slightly higher than October pricing by about US$15.
Mr. Gondwe noted that the Kwacha which is another factor that determines the price of fuel in the country, has also moved from an average of K15.80 ngwee to over K17, hence this may push the cost of petroleum products upwards.
“The ERB is using month minus one pricing so for December we will be using the average price for November which is this month. If you look at the average for this month it has gone up slightly by 10 or 15 dollars from what we had for last month and also coupled with that even the dollar has gone up, so definitely that should push the prices the prices up,” Mr. Gondwe said.
He however stated that an increase in fuel prices does not negatively affect Oil Marketing Companies, unless a reduction because some firms may still have stock from the previous month which was procured at a higher price.
“I think an increase does not affect Oil companies unless a reduction and then you have stock from the previous month that you bought at a higher price,” he stated.
Energy Regulation Board (ERB) is today November 30th 2022, expected to announce new fuel prices for December, 2022.
On 31st October 2022, ERB increased prices for petroleum products for the month of November, with the new price for petrol costing K24.31 per litre from K22.74, low Sulphur Diesel is now at K27.38 from K26.16, Kerosene was increased to K19.23 from K16.06 and Jet A-1 fuel to K21.78 from K20.69, respectively.