The Energy Regulation Board -ERB- says current gains from reduction in international oil prices have been negatively affected by the depreciation of the Kwacha during the same period.
ERB said this has resulted no price changes made since the last review in December, 2019.
ERB Public Relations Manager Kwali Mfuni says ERB has been monitoring movements in international oil prices and the performance of the Kwacha against the US dollar as the two directly impact local fuel prices.
Ms Mfuni has noted that price review conducted on a cargo procured in January 2020 when the oil prices had not yet started to reduce and the Kwacha had started to depreciate showed minor price variations.
She explained that ERB found it prudent to maintain fuel pump prices as changes would have been below the 2 point 5 percent trigger band for price adjustment.
Ms Mfuni said even if international oil prices fall during the period when the current cargo is consumed, the perceived benefit is not immediately passed on in form of a domestic price reduction.
She said benefits can only be passed on if procurement was made during the period when the international oil prices are low.
Ms Mfuni further said Zambia has not had any importation of crude petroleum feedstock since January, 2020 as Indeni has been on industrial maintenance shutdown.
She said government has in the interim relied on importation of finished petroleum products being supplied by Oil Marketing Companies.
Ms Mfuni said in view of the current trends, proposals have been made on options for leveraging on the low global prices and possibility of locking in sufficient low priced cargo orders.
She said that this is to take advantage of the low international oil prices.
