The pump price of gasoline and kerosene has been increased by the Energy Regulation Board (ERB) to K25.89 and K20.45 per litre, respectively, with diesel remaining at K27.38 per litre as of midnight.
Energy Regulation Board Chairperson Reynolds Bowa stated that the rise in gasoline is by K1.58, and the increase in kerosene is by K1.22 during the fuel price review for the month of November.
The Covid-19 pandemic in China and the tension between Ukraine and Russia, Mr. Bowa, have affected the increase in the price of gasoline and kerosene by increasing demand for the commodities on the global market.
The international oil price outlook was greatly influenced by the China Covid 19 situation which clouded the outlook for global energy demand, and added more stress in an already-fragile global oil market. The behaviour of the international oil prices was further affected by mounting fears of a global recession, and speculation of further oil supply restrictions by OPEC+ countries. Generally, the international petroleum products market is still considered fragile and unpredictable,” he said.
According to Mr. Bowa, the depreciation of the Kwacha by 3.44 percent was also noted in the exchange rate, changing the price of gasoline and kerosene.
During this price review period,the exchange rate depreciated from K15.93/US$ to K16.48/US$,representing a 3.44% decline. The depreciation of the Kwacha is mainly attributed to the demand pressures that emerged in September for the procurement of agricultural and petroleum products. These pressures intensified well into November 2022 and this trajectory is likely to be sustained in December 2022,” Mr Bowa said.
He said the price changes take effect midnight of Wednesday,30th November 2022