By JAMES KUNDA –
THE Consumers Unit Trust Society (CUTS) International Zambia has said current Zambian conditions support reduction in the pump prices for petroleum products.
CUTS Zambia centre coordinator Simon N’gona said there was need for regulators in the petroleum industry to react proactively to external market forces that affect the cost of commodities in Zambia.
“The Kwacha has appreciated marginally against the United States Dollar, making the importation of fuel cheaper, while at the same time, the price of oil on the international market has dropped sharply,” Mr Ng’ona said in an interview yesterday.
He said the Energy Regulation Board (ERB) needed to be more proactive in applying corresponding efforts whenever prices of oil fell on the international market.
Mr Ng’ona was reacting to the recent drop in oil prices that have fallen from about US$115 per barrel to about $84 per barrel on the international market.
“It is quite unfortunate that despite the price of fuel going down on the international market, there are no corresponding efforts by regulating agencies to address the cost of petroleum in Zambia,” he said.
Mr Ng’ona said major economic factors were currently working in favour of the ERB and at this point, market indicators were pointing towards a reduction in the cost of fuel locally.
“It is, therefore, relevant that the ERB acts accordingly by reducing the price of fuel as is the case in other countries such as South Africa,” he said.
Mr Ng’ona urged Government to provide additional incentives that will cushion the welfare of consumers.
Currently, fuel prices are at K10.63 per litre for petrol, K10.01 per litre for diesel, while kerosene is pegged at K7.48 per litre.
These prices were effected in April when the ERB adjusted oil prices upwards in view of the Kwacha depreciating against major convertible currencies.