GLOBAL OIL PRICES, KWACHA TO DETERMINE FUEL PRICE IMPACT – ERB Energy Regulation Board (ERB) Economic Regulation Fossil Fuels Acting Senior Manager Zephenia Mwanza says fuel price reviews remain anchored on the statutory monthly pricing framework, while discussions on quarterly pricing are still ongoing. Mr Mwanza said the ERB had consistently announced fuel prices on […]

GLOBAL OIL PRICES, KWACHA TO DETERMINE FUEL PRICE IMPACT – ERB

Energy Regulation Board (ERB) Economic Regulation Fossil Fuels Acting Senior Manager Zephenia Mwanza says fuel price reviews remain anchored on the statutory monthly pricing framework, while discussions on quarterly pricing are still ongoing.

Mr Mwanza said the ERB had consistently announced fuel prices on the last day of every month since the introduction of monthly fuel pricing reforms.

He said consultations on quarterly pricing were continuing, with the appropriate policy framework expected to be communicated once the process was concluded.

“The price review was undertaken in line with the Statutory Instrument framework and the established monthly pricing cycle,” Mr Mwanza said.

He explained that fuel pricing was a self-financing mechanism, with cost-reflective prices intended to ensure that funds recovered from sales could support continued fuel procurement.

“Fuel pricing itself is a self-financing mechanism,” he said.

Mr Mwanza said Zambia currently had about 19 days of diesel stocks and approximately 17 days of petrol stocks, while additional trucks were entering the country to maintain adequate supplies.

On taxes, he said the suspension of surtax and excise duty had lapsed on September 30, resulting in their reinstatement in the fuel pricing structure, while VAT was expected to return in December.

“However, these two components are not the main or key factors determining fuel prices,” Mr Mwanza said.

He said the eventual impact of tax reinstatement would depend on global oil prices, the exchange rate and other pricing fundamentals.

“The effect of the reinstatement of taxes will depend on the prevailing global prices, the exchange rate and other pricing fundamentals at the time,” he said.