• There will be a hike in fuel prices of between K1 and K2 for March 2023
• this is due to the continuous depreciation of the Kwacha against the United States Dollar
• Government should re-introduce fuel subsidies in order to bring down the price of the commodity.
An Energy Expert has projected a hike in fuel prices of between K1 and K2 for March 2023, as Energy Regulation Board (ERB) announces new prices today.
Speaking in an interview with Money FM News, Yotam Mtayachalo said this is due to the continuous depreciation of the Kwacha against the United States Dollar as well as increase in crude oil prices on the international market.
Mr. Mtayachalo said these high prices have had severe human costs, including making food unaffordable due to rising transport costs.
“The effects of soaring energy prices are felt by many sectors. Aviation, shipping and the chemical industry are directly impacted by higher energy prices. The food industry, travel agencies and hospitality are impacted by second-round effects,” he said.
Mr. Mtayachalo suggested that Government should re-introduce fuel subsidies in order to bring down the price of the commodity.
He argued that there is no country that does not subsidize fuel prices because the commodity is a major driver of the economy.
Yesterday, oil prices edged up in volatile trade, as Russia halted exports to Poland via a key pipeline ahead of a hefty supply cut announced for March, but a stronger dollar and fears of recession capped gains.
On the other hand, the Zambian Kwacha has continued losing strength against the US dollar, as it is currently trading at Nineteen Kwacha Sixty Two Ngwee and Twenty Kwacha Two Ngwee.