Maravi

Fuel prices up 7%

Fuel prices up 7%
By Kabanda Chulu
Saturday April 12, 2008 [04:00]

THE Energy Regulation Board (ERB) has with immediate effect increased the price of all petroleum products by seven per cent. Releasing the indicative pump prices yesterday, ERB executive director Sylvester Hibajene stated that the price increase was necessitated by unprecedented volatile international oil prices that hit a new record high of US $111.80 per barrel.

“The upward adjustment of petroleum products prices was also influenced by a number of factors including the depreciation of the US dollar against major currencies and for these reasons, we wish to inform the public that fuel prices have been revised upwards by seven per cent with immediate effect,” stated Hibajene.

He stated that based on the cost-plus model and using the February 2008 cargo, the price adjustment should have increased by about 13 per cent but has been revised by seven per cent due to the government subsidy that has been continued at a reduced rate of 50 per cent.

Hibajene explained that since September 2007, government had been subsidising petroleum products and that prices had not been adjusted despite major increases in oil prices on the world market.

According to the indicative fuel pump prices for major towns, Petrol in Lusaka would now cost K7,616 from about K7,219 per litre and diesel would be selling at K6,388 from K5,974 per litre.

In Mongu, petrol would be sold at K7,900 and diesel would cost K6, 672, while in Chipata, petrol would now cost K7,920 and diesel would cost K6,692. In Kasama, petrol would cost K7,831 and diesel at K6,603 per litre./SM

Labels: ERB, FUEL, SYLVESTER HIBAJENE

posted by MrK @ 3:27 AM