Energy Regulation Board Chairperson Raymond Mpundu has announced that fuel prices will remain unchanged for the current fuel consignment.
Mpundu said in the current 60-day price review, the cost of fuel would remain the same because the average change in wholesale and pump prices had remained at 1.52% less than the the set 2.5% trigger band for adjustment.
“The Energy Regulation Board (ERB) has reviewed the recently imported petroleum feedstock cargo and finished products and determined that there will be no adjustment of fuel prices for this consignment. In line with government policy, fuel prices are determined on the basis of each cargo of the imported petroleum feedstock and finished petroleum products. Each cargo lasts between 45 and 60 days on average; and prices are determined for each cargo to ensure full cost recovery, among other considerations. Therefore, this decision is based on the petroleum feedstock cargo that was imported in January 2018 and finished petroleum products imported in January and February 2018,” said Mpundu.
“Further, from the last fuel price adjustment on 12th February 2018, the International Oil prices marginally decreased. For example, Western Texas Intermediate (WTI) decreased by 2.34% from US$63.68/bbl to US$65.73/bbl in February. Notably, Murban crude (the crude imported by the government) reduced by 3.87% from US$68.81/bbl to US$66.15bbl in February. In view of the foregoing, the average change in wholesale and pump prices would have been 1.52% which is less than 2.5%, the set trigger band for adjustment of fuel pricess either upwards or downwards.”