ERB Explains Fuel Price Mechanism
Written by Mafken FM Newsroom on 10 December 2024
By Respite Kaoma
The Energy Regulation Board (ERB) has shed light on the mechanisms that determine fuel prices in Zambia.
According to ERB Director of Corporate and Consumer Affairs, Mwiika Malindima, fuel prices are influenced by two key factors which is the price of fuel on the international market and fluctuations in the foreign exchange rate.
Mr. Malindima explained that Zambia’s landlocked status and lack of oil production mean that the country relies heavily on imports, making it vulnerable to changes in global fuel prices and exchange rates.
He noted that fuel price adjustments are made on a monthly basis, taking into account prevailing market conditions. The ERB official emphasized that the fuel price mechanism is transparent, with calculations and data available on the government’s website.
Meanwhile, regarding the shortage of fuel, Mr. Malindima attributed it to unrest in Mozambique, which has forced transporters of petroleum products to take longer alternative routes.
