Energy Minister says fuel Pump prices are likely to increase following the continued volatility of the kwacha against the dollar.
Speaking when he presented a ministerial statement Parliament Mathew Nkhuwa said fundamentals that effect pricing of petroleum products in the country have deteriorated since the last fuel pump price adjustment a situation warranting an upward price adjustment.
He said an internal analysis of the profitability of crude crystal and finished petroleum products conducted this year reveals that exchange rate volatility and the overall depreciation of the Kwacha largely affects the profitability and self-financing mechanism of the petroleum sub sector in the country.
He said fuel prices in the country are determined by two factors that are international oil price and the exchange rate of the Zambian Kwacha against the United Sates dollar.
He said the Energy Regulation Board (ERB) only effects fuel price change if the proposed charged in the wholesale price is on average greater than the set thresh- hold of 2.5 percent.
The Energy Minister said since the last price review government has imported sufficient petroleum products that will guarantee national supply for the next three months.