THE Government has reduced the price of fuel by an average K400 per litre from midnight yesterday.
Minister of Lands, Energy and Water Development Chris Yaluma said at a Press briefing in Lusaka yesterday that the fuel pump prices were adjusted following the waiving of the petroleum build-up cost that oil marketing companies (OMCs) used to charge to customers.
The petroleum build-up was a cost introduced following the previous Government’s directive that OMCs should have 15 days fuel reserves to avoid shortages.
Mr Yaluma said the price of petrol had been reduced by K491, while prices of diesel and Kerosene had been slashed by K392 and K486, respectively.
The minister said the price adjustments were effective at midnight yesterday with Petrol reduced from K8,647 to K8,155, diesel from K7,958 to K7,566 while Kerosene has been reduced from K5,641 to K5,154.
“The Government will absorb the K65 cost that used to be slapped on customers at the pump price meant for OMCs to keep 15 days oil in reserves,” Mr Yaluma said.
This, therefore, means that OMCs would not be mandated to observe the 15 days fuel in their reserves as that had been taken over by the Government.
The Government said the construction of fuel reserves was progressing well.
And Lands, Energy and Water Development Permanent Secretary Teddy Kasonso said Zambia currently had 50 million litres of diesel and 30 million litres of petrol at the Ndola reserve tanks. He said the current fuel consumption for the country stood at 1.6 million litres of diesel per day and 600,000 litres of petrol daily.