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The Energy Regulation Board (ERB) has maintained the pump price of petrol for the month of June at K35.56 per litre, while the price of diesel has been increased to K31.1 per litre from K29.6.
ERB Board Chairperson, James Banda, stated that although international oil prices declined during the review period, the depreciation of the Kwacha negated these reductions.
Banda noted that the drop in petroleum product prices in the international market was primarily due to high interest rates and inflation in major economies such as Europe and the United States.
“This reduction in consumer and industrial demand led to a slowdown in economic activities,” Banda said in a statement on Friday.
Read more: Corporate games throw up Banda as new ERB board chairman, after weeks of upheavals
Since the last fuel price review on April 30, 2024, the prices of petrol, diesel, and kerosene declined by 14.13 percent, 10.68 percent, and 7.37 percent respectively.
Specifically, petrol dropped from US$97.27/bbl to US$83.53/bbl, diesel from US$99.51/bbl to US$88.88/bbl, and kerosene from US$98.40/bbl to US$91.15/bbl.
However, between April and May 2024, the Kwacha depreciated against the United States Dollar (USD) by an average of 5.01 percent.
Banda attributed the depreciation mainly to the continued high demand for USD against its limited supply in the market.
He explained that the interactions of the main fundamentals influencing fuel prices had resulted in upward price movements for some petroleum products.
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