The Energy Regulation Board (ERB) in Africa’s second largest copper producer, Zambia has announced a 5.1% -7.2% ease in pump prices of fuel in the capital Lusaka. In a memo signed by ERB Board Chairman Raymond Mpundu, gasoline will effective midnight be priced at K15.2pl from K16.06pl (a 5.1% downward adjustment), while diesel with sell for K13.4pl from K14.65pl and LSG will ease 7.2% to K15.72pl from K16.94pl.
Following a price review, coinciding with a stock replenishment requirement, the ERB has effected a downward price adjustment factoring in crude price bears coupled with stability in exchange rate in the period.
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Easing pump prices are stimulus to economic growth
The Economics Association of Zambia (EAZ) had on 22 February echoed the need for the energy regulator to rethink its fuel procurement strategy to allow for the benefit of crude price bears to benefit manufacturing firms in Zambia.
The Association cited cognizance that private sector activity continues to be in the red zone as revealed by headline Stanbic Bank/Markit Purchasing Managers Index (PMI) readings that have been below 50 for 6 – straight months. As a result of elevated manufacturing cost curves as a consequence of higher fuel prices and minimum wage levels that has fueled input inflation which is at 21-month high and as such selling prices have been on the rise.
The downward price adjustment will give stimulus to the economy as it is surely a boost to productivity, EAZ Deputy National Secretary Rita Mkandawire said in an emailed note.
The Association advised the Energy Regulation Board to rethink its pricing and fuel procurement strategy to allow for benefits of crude price bears to trickle to the markets to allow for reduction in international crude price to be reflected in fuel pump prices. the press release carried.
