The Energy Regulation Board (ERB) has announced revised fuel prices for September 2024, reflecting significant changes in the global oil market.
During the review period, international oil prices dropped, while the Kwacha weakened against the US Dollar. The fall in oil prices was mainly due to uncertainty in production by OPEC+, which was caused by unclear global economic conditions and changing oil demand from major consuming countries. At the same time, the Kwacha’s depreciation against the US Dollar was largely due to reduced Dollar inflows in the local market and higher demand from importers.
These fuel price changes are crucial for vehicle owners and sellers on Pazengo.com, as fuel costs significantly impact vehicle maintenance and operating expenses.
Key Notes
- Oil Prices Decline Due to Market Conditions:
- Since the last fuel price review on July 31st, 2024, the international price of petrol fell by 6.61%, from $88.61 per barrel to $82.75 per barrel. Diesel prices dropped by 5.85%, from $95.87 per barrel to $90.26 per barrel, and kerosene/jet A-1 prices decreased by 6.07%, from $95.31 per barrel to $89.52 per barrel.
- Since the last fuel price review on July 31st, 2024, the international price of petrol fell by 6.61%, from $88.61 per barrel to $82.75 per barrel. Diesel prices dropped by 5.85%, from $95.87 per barrel to $90.26 per barrel, and kerosene/jet A-1 prices decreased by 6.07%, from $95.31 per barrel to $89.52 per barrel.
- Kwacha Depreciation:
- In August 2024, the Kwacha lost 1.88% of its value against the US Dollar, going from K26.01/US$ to K26.50/US$. The benefits of lower international prices were offset by the Kwacha’s depreciation and increased import costs for petroleum products.
- In August 2024, the Kwacha lost 1.88% of its value against the US Dollar, going from K26.01/US$ to K26.50/US$. The benefits of lower international prices were offset by the Kwacha’s depreciation and increased import costs for petroleum products.
As a result, the changes in wholesale prices during August 2024 were below the 2.5% threshold. Therefore, the Energy Regulation Board decided to keep the pump prices for September 2024 unchanged. The prices will remain at K33.47 per litre for petrol, K30.05 per litre for diesel, K27.52 per litre for kerosene, and K30.53 per litre for jet A-1.
The current prices will continue and shall remain in effect until revised by the ERB.
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For more details on fuel prices, you can read the full ERB press release here.
