The Energy Regulation Board (ERB) in Zambia has announced the increment of fuel prices by an average of 8.3 percent, starting Friday (18 April).
PANA reports that petrol has increased by 7.22 percent, diesel by 8.75 percent and Kerosene by 9.45 percent while the wholesale prices have been adjusted by 11.15 percent.
ERB attributed the increase to the cumulative depreciation of the local currency, the Kwacha, against the US Dollar.
“The exchange rate of the Kwacha against the US Dollar depreciated significantly from K5.40 at the last price review in April 2013 to current level of K6.20 to the US dollar by 14.8 percent cumulatively.
“This cumulative depreciation of the Kwacha against the US Dollar has been the major trigger for this fuel price increase,” ERB said in a statement issued late Thursday.
According to ERB, an analysis of the March 2014 feedstock shipment conducted revealed that if prices did not change, a significant loss would be incurred on the shipment of feedstock for refinery.
To avert this loss as well as provide for adequate financial resources to sustain the continued purchase and supply of petroleum products, it became necessary to review prices at the pump, ERB said.