Following a drop in global oil prices, the Zambian Energy Regulation Board (ERB) has reduced the pump price of petrol by 23% and of diesel fuel by 28%.
This latest reduction marks the third from the regulatory board, following two minor reductions made in 2014 that were criticized for being too small to have a significant impact on the economy.
According to a statement released by ERB, the price reduction will take effect immediately with the potential to introduce additional future reductions if the future procurement of feedstock is made during the current trend of reduced international oil prices and if the exchange rate appreciates or holds steady
“The benefit of the continued drop in international oil prices is now being realized in the form of the substantial wholesale prices and pump prices adjustments,” said the ERB in a released statement.
Zambia has reported some of the highest prices of fuel products in the southern Africa region, however, oil prices are now their lowest in nearly six years with prices that have dropped from more than USD100/barrel to less than USD 50/barrel in the last 6 months.