By BRIAN HATYOKA –

CURRENT low prices of oil on the international market is not reason enough for Zambia to slash fuel costs on the domestic market, the Energy Regulation Board (ERB) has said.
Oil prices on the global market are currently around US$30 per barrel.
The ERB noted that there were other factors that were considered beyond oil prices on the global market, to make price adjustments locally.
Concerns have been raised to reduce the prices of fuel locally following a sharp drop in the global commodity prices owing to low consumption from the world’s second economic giant, China.
ERB executive director Langiwe Lungu said other factors such as the exchange rate had not changed to justify a reduction in local fuel prices.
Ms Lungu said in an interview yesterday that the Kwacha/US dollar exchange rate was one of the main factors in determining fuel prices.
She said the exchange rate had worked against the country from the time fuel price adjustments were made in 2015.
“Even if oil prices have dropped globally, the depreciation of the Kwacha in general has been too much from the last time we adjusted fuel prices.
“For instance, the Kwacha was trading at K7.80 to a dollar the last time we adjusted fuel prices, but the rate now is around K11, which makes it difficult to reduce prices,” Ms Lungu said.
She said fuel prices would have been adjusted downwards if the Kwacha was still trading around K7.80 to a dollar.
Ms Lungu said the Board had not yet met to assess the price of the commodity since the last adjustments and that the nation would be informed if such a move was to be taken.