• ZACCI has noted the positive impact the reduced cost of Energy- Petroleum products will have on the market at large.
• The drop in prices of petrol and low Sulphur diesel will have a positive impact on the domestic market.
• ZACCI is encouraging light to heavy fuel users to enhance and increase production and service activities.
Zambia Chamber of Commerce and Industry (ZACCI) has urged light and heavy fuel users to enhance and increase production and service activities in view of the reduction in prices of petroleum products.
Chamber President Jerome Kawesha told Money FM News that heavy fuel users need to take advantage of positive cost related fuel windows such as the current drop in prices of the commodity.
Mr. Kawesha stated that the drop in prices of petrol and low Sulphur diesel as announced by Energy Regulation Board (ERB) will have a positive impact on the domestic market.
“ZACCI has noted the positive impact the reduced cost of Energy- Petroleum products will have on the market at large. The contributing factors from a global perspective have been acknowledged as well.”
“We would like to encourage light to heavy fuel users to enhance and increase production and service activities during such positive cost related fuel windows when they occur,” Mr. Kawesha stated.
Meanwhile, Mr. Kawesha called on government to facilitate dialogue forums that are specific for Sector Regulators and the Private Sector, to help identify and implement economic growth and investment opportunities on an on-going basis.
“Regulatory agencies would have opportunities of sharing long term visions for specific sector growth for the long term thus create certainty, investor confidence and trust, improved compliance, sustainability and trigger increased greenfield projects,” he said.
Energy Regulation Board (ERB) has reduced fuel pump prices for June 2023, by K3.14 ngwee per liter for petrol, K2.77 ngwee per litre for low sulphur diesel, and 73 ngwee per litre for kerosene.
Energy Regulation Board (ERB) has reduced fuel pump prices for the month of June 2023, by K3.14 Ngwee per liter for petrol, K2.77 Ngwee per litre for low sulphur diesel, and 73 Ngwee per litre for kerosene.
Board Chairperson Reynolds Bowa told Journalists at a media briefing that the price of Jet A1 fuel at Kenneth Kaunda International Airport has also reduced by 96 ngwee from K22.60 Ngwee to K21.64 Ngwee per litre.
Engineer Bowa attributed the reduction in prices of petroleum products to a drop in the cost of crude oil on the international market which has provided a favorable impact on the domestic market, despite the depreciation of the Kwacha.
“In the previous review in May 2023, the average prices of petrol, diesel and kerosene on the international market were US$93.04 per barrel, US$95.22 per barrel, and US$92.72 per barrel, respectively, compared to US$81.88 per barrel, US$84.70 per barrel, and US$85.51 per barrel respectively for June 2023 fuel price review. The movements represent a decrease of 11.9 percent for petrol 11.05% for diesel and 7.78% kerosene respectively.”
“The oil prices on the international market generally declined in the period under review. The factors that caused the decline of oil prices included concerns about a looming recession that affected the oil and gas market. Fear of a banking melt down following the collapse of some Western banks also created additional uncertainty,” Engineer Bowa said.
He noted that the effect of the drop in international oil prices outweighed the impact of the depreciation of the Zambian Kwacha against the United States dollar and has provided a favorable impact on domestic fuel prices.
Petrol is now trading at K24.45 Ngwee from K27.59, low sulphur diesel at K21.87 Ngwee from K24.64 Ngwee, and Kerosene at K19.74 Ngwee from K20.47 Ngwee in the previous month.