The Energy Regulation Board has adjusted upwards the pump price of fuel effective midnight tonight citing changes in two main variables that influence the price of the commodity.

In a statement issued by ERB Board Chairman Raymond Mpundu today, he stated that oil prices had increased on the international market whilst the Kwacha had depreciated.

“Specifically, from the last price adjustment on 17th October 2017, Murban crude oil prices per barrel increased by 9.04% from US$58.10/bbl to US$63.35/bbl in November 2017, reaching US$64.85/bbl by December 2017. Further, since the last price adjustment in October 2017, the Kwacha has depreciated against the United States Dollar by about 2.15% from an average rate of K9.76/US$ down to the December 2017/January 2018 level between K9.97/US$ and K10.03/US$,” read the statement.

“Of the two fundamentals, the International oil price has been the most volatile and is the key driver for this price adjustment. Notably, prices have been remained stable since October 2017. Therefore, it has been five months since the ERB last adjusted the pump prices. It should be noted that in order to ensure cost recovery following the removal of subsidies on fuel prices, and the policy of periodic reviews of fuel prices, the Board has determined that prices be revised as follows: Petrol from K12.97 to K13.75, Diesel K11.09 to K12.01, Kerosine K7.82 to K8.85 and LSG K13.38 to K14.30.”

He stated that the price adjustment was based on the current cargo.

“The price adjustment of less than K1.00 per liter for all the petroleum products except Kerosene is inevitable in order to maintain the security of supply. The ERB will endeavor to work jointly with other stakeholders to explore avenues for maintaining price stability and possibly lower prices whilst maintaining price recovery,” stated Mpundu.