THE Energy Regulation Board (ERB) has increased the pump prices of petroleum products by K2.12 per litre for petrol and K2.61 per litre for diesel.

In a statement, Monday, ERB board chairperson Reynolds Bowa said the upward adjustment in the pump price was inevitable to ensure the sustained supply of fuel to the Zambian market.

He added that there had been a steady rise in international prices of petrol and diesel recorded in January and February 2022.

“The Energy Regulation Board (ERB) has increased the pump prices of petroleum products by K2.12/litre for Petrol and K2.61/litre for Diesel, while the price of Kerosene has remained unchanged. The upward adjustment in prices is inevitable to ensure the sustained supply of fuel to the Zambian market in the short to medium term. Notably, there has been a steady rise in international prices of petrol and diesel recorded throughout the month of January into February 2022. This has had a major impact on local fuel prices, with the price of both imported products rising above the US$100/barrel mark. As has been reported, the supply disruptions being experienced on account of the ongoing geopolitical tension between Russia and Ukraine have had an immediate adverse impact on oil prices,” he said.

“Further, compounding this was the continued depreciation of the Kwacha against the United States Dollar, between the last price adjustment in January 2022 to mid-February 2022. Therefore, based on the trend in the international oil prices and the exchange rate in the last 30 day cycle, the prices for March 2022 have been adjusted as follows: petrol current K19.84, new K21.96, absolute variance K2.12; low sulphur diesel current K18.93, new K21.54, absolute variance K2.61; kerosene current K15.39, new K 15.39. The above price changes take effect midnight of Monday, 28th February 2022.”

Bowa reiterated that reviewing the prices of fuel on a monthly basis was meant to ensure local fuel prices were reflective of what was prevailing on the international oil markets and the local exchange rate.

“As previously indicated, fuel price reviews will continue to be conducted on a monthly basis. This is to ensure that local fuel prices are reflective of what is prevailing on the international oil markets, while taking into account the Kwacha/US Dollar exchange rate. To further enhance the predictability of these price reviews, monthly fuel prices will be announced at the end of each month and will be based on a 30 day cycle, to account for the movement in international oil prices and the exchange rate; and also minimise any disruption in the performance of the petroleum industry,” said Bowa.