— Traders hail govt move to reduce fuel prices

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Traders hail govt move to reduce fuel prices

Lusaka, January 16, 2015,ZANIS  — National Traders and Association of Zambia  (NTAZ ) Vice President Geoffrey Mulenga has praised government for making a drastic reduction in Fuel prices in the country.

Mr Mulenga says the reduction has come at a right time when the cost of living in the nation has continued to rise to the disadvantage of the people.

He told ZANIS in an interview in Lusaka today that the move is welcome as it is going to alleviate the much suffering of the Zambian People.

He revealed that when pump prices of fuel is reduced, the prices of most essential commodities also are expected to go down.

Mr Mulenga also urged those people and business entities  who do not want to reduce prices of commodities to do so now that there is further reduction of the driver of the engine  economy of any nation.

The Energy Regulation Board (ERB) yesterday  reduced the pump price of petroleum products by K2.29 for petrol; K2.59 for diesel; and K2.08 for kerosene, which translates into 23.13 percent , 28.22 percent and 30.76 percent  respectively.

In a statement made available to the media, ERB said that the wholesale prices of petroleum products have been reduced by 35.93 percent effective midnight 16th January 2015.

According to the statement, the ERB uses the Cost Plus pricing model, which operates on the principle that the final price of petroleum products should cover all costs incurred in the supply chain.

Wholesale and pump prices are determined based on the cost of each feedstock cargo received. The cost of each feedstock cargo is mainly affected by global crude oil prices and the exchange rate of the Kwacha to the United States Dollar.