ERB Vice Chairperson James Banda revises September 2022 Petroleum Pump Prices in Zambia downwards
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ERB Vice Chairperson James Banda revises September 2022 Petroleum Pump Prices in Zambia downwards – Picture by Kwilanzi Newspaper Zambia (KNZ)
By SAEED SIMON BANDA and DERRICK SINJELA
THE Energy Regulation Board (ERB) has adjusted the pump prices of petroleum products downwards by Kl.65/litre for petrol, Kl.75/litre for diesel and Kl.72/litre for kerosene for the month of September 2022.
At the last review on 31st July, 2022, which yielded the August 2022 fuel prices, the average price of petrol, diesel and kerosene was US$123.05/bbl, US$146.52/bbl, US$135.36/bbl, respectively, compared to US$106.87/bbl, US$131.25/bbl, US$124.23/bbl respectively, for the current price review.
According to ERB Vice – Board Chairperson James Banda, the movements represent a decline of 13.15%, 10.42%, 8.23%, respectively, in prices of petrol, diesel and Kerosene.
“The reduction in pump prices is due to trends in the global petroleum prices and the exchange rate of the United States dollar to the Zambian Kwacha in the month of August. Petroleum prices continued to decline following the slowed economic activity globally due to speculations of a pending recession. The international oil market outlook remains mixed and difficult to predict as countries take various responsive measures to the geopolitical tension caused by the Russia and Ukraine war,” read Banda’s Wednesday, 31st August, 2022 Press Statement.
Added Mr. Banda: “Further, during the review period, as the Zambian kwacha continued to appreciate. The continued appreciation of the kwacha month-on-month is attributed to increased supply of foreign exchange on the market including positive market sentiments arising from stronger prospects of an IMF deal on debt restructuring.
Notably, during the review period, crude oil prices fell by between 10 and 15%.Similarly, finished petroleum products prices on the international market declined gradually.
Since the last price review in July, the kwacha appreciated, month-on-month by 2%, from an average of K16.45/US$ to K16.12/US$”.
Meanwhile, Banda noted that during the same period, international prices of petrol, diesel and kerosene all declined by an average of 13%, 10% and 8%, respectively.
In line with the ERB pricing current pricing mechanism, Banda explained that the combined effect of the two key factors (exchange rate and international oil prices) has been favourable enough to warrant a price reduction.
Based on the foregoing, the following are the determined changes in the national. uniform pump prices for September 2022:
“Retail Pump Prices for September 2022 – known as
National Uniform Pump Prices K/Litre
Product Current New absolute
Variance % price changes take effect midnight of Wednesday, 31st, August, 2022:
“PETROL 23.19 (7.12),
LOW SULPHUR DIESEL 24.87 23.12 (7.04), and
KEROSENE 18.43 (1.72) (9.33)”.
On 31st July, 2022, ERB Board Chairperson Reynolds Bowa adjusted downwards the pump prices of petroleum products by K3.56/litre for Petrol, K3.14/litre for Diesel and K2.84/litre for Kerosene.
