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The Energy Regulation Board (ERB) has increased the petroleum prices of diesel and petrol effective mid-night. This is due to movement in the international oil prices and exchange rates.
The Board has also suspended the revision of the price of Kerosene, according to Chairperson, Reynolds Bowa.
Bowa said petroleum, diesel and Jet AI have been revised upward by K 3.85/1itre, K3.52/1itre and K3.86/Iitre respectively.
He said going forward, Kerosene shall be sold at the last set price for the month of August, 2023 of K20.44/litre.
Bowa attributed the changes in petroleum prices to international oil price and the exchange rate.
“Petrol was fetching K25.57, will now fetch at K29.42, Diesel will now be fetching at K26.88 from K23.36 while Jet A-1 which was at K22.56 will now be K26.42,” he said.
Bowa further stated that the increase in international oil prices was attributed to tight oil supply on the market as the world’s biggest exporters having announced an extension to production cuts to October, 2023.
He added that there was reduced crude oil supply from production areas in the Gulf of Mexico due to tropical storms and expected hurricanes in the region.
Read More:Petrol, diesel, aviation fuel to sell at higher prices in August (see price structure)
“In August 2023 the monthly average exchange rate of the Kwacha to the United States Dollar depreciated from Kl8.42/US$ to K 19.42/US$, representing 5.43 percent,” he said.
Bowa said the depreciation of the Kwacha was mainly driven by the low supply of foreign exchange.
He said the two key fundamentals that affect the price of fuel in Zambia moved in the same adverse direction.
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