THE fuel pump price has been adjusted upwards by an average of K866. The increment was with effect from midnight last night.
Energy Regulation Board (ERB) executive director Butler Sitali said in a statement on February 11 that a litre of petrol has been increased from K7,639 to K8,647 , diesel has gone up from K6,999 per litre to K7,958 while the price of a litre of kerosene has gone up from K5,008 to K5,641.
Mr Sitali said the increase in the price of crude oil on the international market has made it necessary to review the price of petroleum products in Zambia and that the new prices are uniform across the country.
He said unless the prices of petroleum products are adjusted, it will become increasingly difficult for the nation to meet the cost of current and future stock-feed imports.
“Pump prices of fuel were last adjusted in September 2010 when the uniform pump pricing mechanism was implemented.
Since then, prices of crude oil on the international market have continued to rise and surpassed US$100 per barrel on January 31, 2011, amid fears that the tensions in Egypt could adversely impact the Suez Canal, an important shipping route for oil between the Gulf countries and the Mediterranean,” he said.
Mr Sitali said the increase in the price of crude oil has also been attributed to increased demand from China and the United States of America.
He said Zambia imports all its petroleum feedstock requirements from the international market and that prices are determined based on the cost of each cargo and the exchange rate of the Zambian Kwacha to the United States dollar.
Mr Sitali said in May last year, petroleum feedstock was procured at a cost of UD$68.6 million and that the latest cargo that was procured in December 2010, cost US$81 million.