Analysts project fuel price to hit over K32.00 per litre this week

Some analysts have projected that Zambians will experience fuel spike this week with a litre possibly hitting K32.97.

This follows the losing streak of the Kwacha which has been on in the last weeks.

Munyumba Mutwale, a Financial Analyst and ZATU Financial Advisors strongly feels that the rate could be higher than K32.97 a liter, factoring supply chain factors such as processing and logistics which had been the key driving factors in the last six price adjustments.

Currently, a litre of petrol sells at K29. 42 while diesel is selling at K26.88.

Mutwale told the Kwacha Arbitrageur magazine that higher fuel especially cements the case for elevated inflation which did exacerbate the rising price pressures the copper producing nation faces.

“This line up with our expectation that inflation will be within the 11 percent to 13 percent range by December and into 2024,” he said.

And, Zanaco Chief Risk Officer, Mutisunge Zulu, has warned that should inflation remain untamable, the central bank could scale the benchmark interest rate higher in the November sitting.

Zulu also warned that higher crude prices could drive agriculture input prices higher if not tamed.

“Inflation is still a headache globally, and a fuel crisis sparked by Russia’s action could force interest rates higher and constrain global growth even further,” he said.

Meanwhile, the Kwacha Arbitrageur strongly supported the fundamental quantitative assertion that a 12.07 percent minimum average spike in pump prices was likely.

“At the current pace, considering the losing streak of the Kwacha has been on in the last weeks, reverberating between K20.8 and K21.2 for a unit of dollar, nearing US$100 per barrel, strongly supports the fundamental quantitative assertion that a 12.07 percent minimum average spike in pump prices is likely.

“The week could see the energy regulator announcing K32.97 a liter fuel,” it stated.

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