Zambian Oil Prices Go Up Amid International, Local Pressure

Zambian oil prices go up amid international, local pressure

LUSAKA, Aug. 12 (Xinhua) — Zambian energy body uplifted petrol and diesel retail prices by 6 percent and 11 percent, respectively on Thursday as the international oil prices have been in upward trend and the country is facing oil shortage, local newspaper The Post reported Friday.

After the adjustment, benchmark pump prices in Zambia’s capital of Lusaka stand at 5,779 kwacha (1 US dollar is approximately equal to 4,600 kwacha) from 5,445 kwacha per liter of petrol and 5, 479 kwacha from 4,975 kwacha per liter of diesel, the report said.

The Energy Regulation Board (ERB) attributed the move mainly to international crude oil price hikes.

“Petrol prices on the world market based on the Arabian Gulf market, when compared to those in June, have risen by 8.47 percent from 57.03 US dollars per barrel to 61.92 dollars per barrel,” ERB spokesperson Yammie Chanda said in a statement.

“Diesel prices have also registered an increase of 1.45 percent from 66.33 dollars per barrel to 67.29 dollars ,” Chanda was quoted by the newspaper as saying.

On the other hand, the temporary shutdown of the country’s sole oil refinery plant, Indeni, from July 18 for maintenance also affected the supply of diesel on the local market.

The price hike was also meant to enable oil marketing companies recover the losses incurred during the importation of diesel to cushion the shortage.

Imported diesel price, which ranged from 580 to 667 dollars per cubic meter, is much higher than the wholesale price, which stood at 539 dollars per cubic meter, in Indeni.

“Consequently, the ERB has factored into the loss that importers of diesel have incurred at 180 kwacha per liter in the price of diesel,” said Chanda.

The price of kerosene has been maintained at 3,948 kwacha per liter.