RUSSIA’s decision to further implement a voluntary export cut of diesel and petrol, plus the move by Petroleum Exporting Countries (OPEC) to also follow suit, has contributed to the increase in fuel prices in Zambia.
The Energy Regulation Board(ERB) has increased fuel prices effective midnight.
A litre of diesel will sale at K29. 96 from the previous K26. 88 while a litre of petrol, which was fetching at K29. 42 this month, will now sale at an upward K29. 9 a litre.
The price of Jet A- for major airports has also been increased from K29.29 to K30.50 a litre.
ERB board chairperson Reynolds Bowa told a media briefing this evening that the export cuts of fuel internationally and the depreciation of the kwacha against the dollar are among the reasons behind the fuel price hike.
“The main drivers for the changes in petroleum prices are the upward movements in international oil price and the depreciation of the Kwacha against the United States Dollar.
“The price of oil on the international market, between September 2023 and che current price review for October 2023, has continued to increase,” Mr Bowa said.
He noted that the average prices of Petrol, Diesel and Kerosene increased on the international market by 3.89percent, 6.36percent and 7.21percent respectively.
“The general increase in international oil prices is attributed to declining global oil inventories following the extended oil production cuts by the Organisation for the Petroleum Exporting Countries and its alliance (OPEC+).
“In addition to the OPEC+ agreed extended oil production cuts, Russia has further implemented a voluntary export cut of diesef and petrol,”he said.
Mr Bowa added that this has further reduced the supply of global petroleum products and has contributed to the increase in prices on the international market, as demand outstrips supply.
“Notably, within September, 2023, the international prices for finished petroleum products reached above US$ 1 00/bbl which was -elatively high in comparison to past review periods,” he said.
Mr Bowa said the monthly price reviews are currently ideal compared to long term considering that international prices of the commodity are reviewed everyday.
(Mwebantu, Saturday, 30th September, 2023)