By JAMES KUNDA? –
GOVERNMENT has directed the Energy Regulation Board (ERB) to reduce fuel prices in the country following oil prices reducing on the international market.
Mines Energy and Water Development Permanent Secretary Charity Mwansa ordered the ERB to review cost structures for fuel so as to reduce the local prices due to the favourable price of oil on the global market.
Ms Mwansa said yesterday that the ERB should expeditiously review the fuel pricing mechanism in view of the plummeting oil prices.
At the close of business on Wednesday, Brent crude oil fell below US$80 a barrel for the first time since 2010, and prices remained soft yesterday.
“I have already instructed ERB to review the fuel pricing mechanism, taking into consideration that oil prices on the international market are now favourable and the costs of purchase and importation are lower,” Ms Mwansa said.
“This benefit should be passed on to Zambians through reduced fuel costs locally especially now that even the Kwacha has appreciated steadily against the United States Dollar,” she said.
Several consumer watchdogs and other private sector players had called on the Government to address the high cost of fuel locally in the wake of favourable global prices.
This was after it was noted that regional neighbours such as South Africa had already reduced fuel prices by 45 cents a litre for petrol and 60 cents per litre for diesel, in light of changes in global prices.
The Zambia Consumer Association (ZACA), Consumers Unit Trust Society International Zambia and the Private Sector Development Association were among organisations that had been pushing for the price drops on the local market.
Fuel prices had remained relatively high at K10.63 per litre for petrol, K10.01 per litre for diesel, while kerosene was costing K7.48 per litre.