Reduction of fuel pump prices receives mixed reaction

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Public and Private Drivers Association of Zambia has praised the Energy Regulation Board (ERB) for reducing fuel pump prices with effect from Friday midnight this week.

In an interview with ZANIS, Association President Josiah Majuru welcomed the move as it will trigger a reduction in the cost of living through reduced bus fares and prices of some essential commodities.

However, a Lusaka based business consultant Stanfford Linzu said the fuel reduction is minimal and insignificant to positively impact consumers and the general public.

Mr Lizu urged ERB to strive to reduce fuel prices by significant margins prices if the Zambian people are to benefit from fuel price reduction.

He pointed out that bus fares and prices of essential commodities are not likely to go down.
And Zambia Bus and Tax Workers Union President commended the ERB for finally effecting a long overdue fuel reduction.

Mr Lyambai said Zambia has the highest price of the fuel in the sub region and hoped for meaningful fuel price reduction.

The Energy Regulation Board yesterday announced in a statement the reduction of fuel pump prices by K 0.25 for petrol, K0.28 for diesel and K0.27 for Kerosene with effect from Friday midnight

Wholesale petroleum prices have also been reduced by 3.66 percent.

The ERB said the reduction in fuel prices is attributed to the general fall in international crude oil prices in recent months.

It however, noted that the exchange rate of the Kwacha against the US dollar depreciated since the last price adjustments in April 2014 depreciated by 6.8 percent from K 5.9 per US dollar to K 6.3 per US dollar by mid November 2014.

It says the Kwacha depreciated alone would have triggered and upward adjustment in pump prices however this has been moderated by the fall in international oil prices during the same period.

The national uniform pump prices in Kwacha per litre will be 10.38 for petrol from 10.63, Diesel will be 9.73 from 10.01 while Kerosene will be trading at 7.21 from 7.48.