13 January 2010

Zambia: Fuel Prices Go Up

THE Energy Regulation Board(ERB) has increased the pump price of fuel and other petroleum products by 15 per cent with immediate effect.

Acting ERB executive director Joshua Malupenga said the excise duty on diesel had also been revised upwardly.

Mr Malupenga said the move followed the board's decision to increase the prices of diesel, petrol and kerosene by 15 per cent with effect from midnight last night.

"The increase has mainly been necessitated by a rise in prices of crude oil from US$40 per barrel in early 2009 to the current price of about $82 per barrel.

"Consequently the cost of a 90,000-tonne cargo has increased from US$40 million in February/March 2009 to $70 million in December 2009," said Mr Malupenga.

He said, the excise duty on diesel had been adjusted from seven per cent to 10 percent with effect from January 1, 2010. The new Tazama pumping tariff of $53.52 per tonne approved by the board last month had been applied as opposed to the previous rate of $39 per tonne.

Mr Malupenga said the new prices were necessary to ensure that the product from the 90,000 tonne Iron Monger Cargo that docked at the port of Dar- es-Salaam in Tanzania in December, was sold at an appropriate rate for sustainable supply.

In Lusaka, the new pump prices would be K6, 691 for petrol, K6,300 for diesel and K4,409 kerosene while, in Kasama the new prices are K7,508 petrol, K7,119 for diesel and K5,114 kerosene.

In Livingstone petrol will now cost K7, 148, diesel K6, 757 and kerosene K4, 804 while, in Chipata petrol will be K7, 347, diesel K6, 958 and kerosene K4,976 and in Solwezi petrol will be K6,943, diesel K6,552 and kerosene K4,314.

The new price of petrol in Kabwe is K6, 661, diesel (K6, 270) and kerosene (K4, 384) while in Mansa petrol will cost K7, 370, diesel K6, 981 and kerosene K4, 996 and in Mongu petrol will cost K7,455, diesel K7,066 and kerosene K5,069.

For Ndola petrol will cost K6,579, diesel K6,188 and kerosene K4,314.

Mr Malupenga said: "It should be noted that petroleum product prices were last adjusted in December 2008. The prices were largely kept stable from 2008 to date through government subsidies meant to cushion customers."

He said that in view of the changes, retailers were expected to issue receipts for all sales made, while customers were advised to demand and keep receipts that clearly showed the name of the service stations and other purchasing details.

Mr Malupenga said the record was important for future reference in case of any dispute or complaints of overpricing.

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