Energy Regulation Board (ERB) has reduced the pump price for diesel by K2.97. The product will now cost K26.28 for the month of April, down from K29.25 pegged in March 2023.
The price of petrol has slightly reduced from K28.52 to K27.59, as the price of Jet A-I at Kenneth Kaunda International Airport (KKIA) remains unchanged at K 25.34 while kerosene will trade at K22.29, unmoved.
Speaking during a monthly price review in Lusaka on Friday, ERB Board Chairperson, Reynold Bowa, said in the price review for March 2023, the average price of petrol on the international market was US$92.58 per barrel (/bbl).
Bowa said the price of diesel was US$106.28/bbl and kerosene at US$106.01/bbl respectively.
He said as for April, petrol, diesel and kerosene on the international market was US$89.60/bbl, US$98.83/bbl and US$96.04/bbl.
“The general decline in the prices of oil on the international market during March 2023 was mainly caused by factors related to the rising global inflation; and speculation on prospects of poor world economic performance in 2023,” Bowa told the media.
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He observed that there was a general rise in global interest rates making the United States Dollar more expensive resulting in weakening demand for dollar-priced petroleum products.
Bowa further observed that during the previous fuel price review, the exchange rate traded at an average of K19.40/US$ but again depreciated by 6.34 to an average of K21.44/US$, in April 2023.
“However, in the April 2023 price review, the ERB has taken account of the conversion of TAZAMA pipeline, from a carrier of crude oil to a carrier of finished Low Sulphur Diesel (LSD) resulting in a
significant reduction in the price of diesel on the domestic market,” he said.
As such, Bowa said a share of relatively cheaper diesel from the pipeline was now available for consumption in Zambia.
The ERB has applied a transport cost sharing mechanism to account for the imported fuel that is already in transit by road.
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