By JAMES KUNDA and  DELPHINE ZULU –
FUEL prices have been adjusted upwards by an average of K1 owing to the depreciation of the Kwacha against the United States (US) Dollar.
Effective last midnight, petrol is now costing K8.74 per litre from K7.60 per litre representing an increase by K1.14 while diesel is fetching K7.59 per litre from K6.59 per litre highlighting an upward adjustment of K1.
Kerosene has been increased to K5.40 per litre from K4.69 per litre representing an increase of K0.71 while the cost of low sulphur gasoil is up from K9.89 per litre to K10.88 per litre highlighting an increase of K0.99.
The previous increase in petroleum prices was in April 2014 when petrol rose to K10.63 per litre from K9.91, diesel to K10.01 from K9.20 and kerosene to K7.48 from K6.83.
Fuel pump prices, however, reduced in January by K2.29 for petrol, K2.59 for diesel and K2.08 for kerosene, following the plummeting international oil prices and a fairly stable Kwacha.
International oil prices and the domestic exchange rate are the determining factors in establishing the wholesale and retail prices of petroleum.
Announcing the revised petroleum prices in a statement, Energy Regulation Board (ERB) board chairperson  Geoff Mwape said the changes were effective midnight yesterday.
“The adjustment is mainly due to the volatility of the Kwacha which resulted in the significant depreciation of the local currency against the Dollar.
“The Kwacha reached an all-time high of K7.80/US$ during the period January to April 2015,” he said.
Pastor Mwape said periodic price adjustments were essential to ensure full cost recovery in the fuel supply chain and enough revenue to procure future petroleum feedstock and finished products.
He said ERB would endeavour to automatically adjust prices to attain cost reflectivity for each petroleum feedstock consignment and imported finished products.
Meanwhile, Economist, Oliver Saasa said the increment in the fuel pump price was expected going by the performance of the Kwacha and oil prices on the international market.
Professor Saasa said in an interview yesterday that the Kwacha had been depreciating while oil prices in the recent past were shooting up thereby putting pressure on the Treasury.
“The longer the static price, the more pressure on the Treasury due to the depreciation of the Kwacha suffered in the past months, for us as economists, it was expected but it’s not good for the country,” he said.