• International prices have generally gone down.
• Government has scrapped of excise and customs duty on both petrol and diesel effective first January.
• That will push fuel prices significantly down in the range of between K1 to K4 for both petrol and diesel.
An Oil Marketing Company (OMC) has predicted a significant drop in domestic fuel prices for January, 2023 in the next monthly price review.
Speaking in an interview with Money FM News, Company Managing Director Chomba Gondwe said prices for both petrol and diesel are likely to drop by between K1 to K4.
Mr. Gondwe stated that this is due to the general decline in international crude oil prices as well as government’s move to scrap off excise and customs duty on both petrol and diesel.
“We expect a significant drop in prices of fuel for January, 2023. International prices have generally gone down and then government has scrapped of excise and customs duty on both petrol and diesel effective first January, so that will definitely push fuel prices significantly down in the range of between K1 to K4 for both petrol and diesel,” Mr. Gondwe said.
Oil prices on the international market have edged higher on hopes of a recovery in fuel demand as China continues to ease its Covid-19 restrictions, with Brent futures rising 9 cents, to US$84.42 a barrel, while US crude has advanced 10 cents, to US$79.63 a barrel.
Amid the optimistic market mood, both benchmarks hit their highest level in three weeks on Tuesday.
Energy Regulation Board (ERB) is expected to announce fuel prices for January 2023 on Saturday 31st December, 2022.
On 30th November 2022, the Board adjusted upwards fuel prices for December, 2022 by K1.58 ngwee per litre for Petrol, K1.22 ngwee per liter for Kerosene, and K1.45 per litre for Jet A1 fuel at Kenneth Kaunda International Airport, while the price of low Sulphur diesel remained unchanged.
