• The main drivers for the changes in petroleum prices are the movements in international oil price and the exchange rate
• Price of oil on the international market, between July 2023 and price review for August, 2023 has increased.
• The average prices of petrol, diesel and Kerosene increased by 3.50%, 7.5% and 6.97% respectively.

Energy Regulation Board (ERB) has adjusted upwards the price of Low Sulphur diesel by K1.49 ngwee per litre, petrol 64 ngwee per liter and Kerosene K1.91 ngwee per litre for August 2023.
Addressing Journalists at a media briefing, Board Chairperson Reynolds Bowa revealed that ERB has also increased the price of Jet A-1 fuel at Kenneth Kaunda International Airport by K2.21 ngwee per liter.
Engineer Bowa explained that this means the average prices of petrol, diesel, Kerosene, and Jet A-1 fuel at Kenneth Kaunda International Airport have increased by 6.81%, 2.57%, 10.31%, and 10.86% respectively.
He attributed the increase in the cost of fuel to movements in the exchange rate as well as international oil prices.
“The main drivers for the changes in petroleum prices are the movements in international oil price and the exchange rate. The price of oil on the international market, between the July 2023 and the current price review for August, 2023 has increased. Specifically, the average prices of petrol, diesel and Kerosene increased by 3.50%, 7.5% and 6.97% respectively,” Engineer Bowa noted.
He further said the rise in fuel prices on the international market is resulting from speculation of potential global supply deficits due to the recently announced crude oil supply cuts by the Organization for Petroleum Exporting countries (OPEC+) and its allies.
“The announced oil supply cuts are happening when there is a steady increase in demand, following the on-going global economic recovery, post Covid-19 pandemic. The increasing trend in global oil prices is consistent with the increasing prices of major commodities in reaction to prospect of interest rate hikes in major global economies.”
“During the August 2023 price review period, the exchange arte if the Kwacha to the United States dollar depreciated from K17.73/US$ to K18.51/US$, representing 4.35%. The depreciation of the Kwacha continues to be mainly driven by the demand for foreign exchange outstripping the supply. Despite the positive outlook resulting from the conclusion of the debt restructuring programme, the Kwacha reaction is slow because it continues to face persistent inflationary pressures,” he stated.
According to Engineer Bowa, Low Sulphur diesel will now be selling at K23.36 ngwee per litre from K21.87 ngwee per liter in July 2023, while Petro will move from K24.93 per litre to K25.57 ngwee per litre, kerosene from K18.53 ngwee per litre to K20.44 ngwee per litre, and Jet A-1 fuel will move from K20.35 ngwee to K22.56 ngwee per litre.
“The price of Jet A-1 at Mfuwe Airport is K23.77 per litre, Harry Mwanga Nkumbula International Airport in Livingstone at K23.37 per litre, and Simon Mwansa Kapwepwe International Airport in Ndola at K22.56 per litre.”
“During the period under review, the two key fundamentals that affect the price of fuel in Zambia moved in the same adverse direction. Prices of oil increased while the exchange rate depreciated against the United States dollar. This caused domestic prices of fuel to increase,” he said.