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Zambia has highest fuel cost in Africa

Zambia has highest fuel cost in Africa
By Chiwoyu Sinyangwe
Wednesday August 27, 2008 [04:00]

ZAMBIA has the highest cost of fuel on the continent at US$ $9.88 per gallon, Harvard Business publishing magazine Portfolio has revealed. According to the magazine, which also made comparisons of the countries' fuel prices against the gross domestic product (GDP) per capita, Libya had the lowest cost of the petroleum at US$0.5 per gallon.

The report, which was compiled in June this year, attributed the high fuel cost in the Zambia to among other things the country's inefficient tax system in petroleum pricing.
"Price of gallon depends less on market forces than on given national taxes, tariffs, subsidies, refining and transport cost," the report which features mostly business interactive articles read. "In June this year, government of Zambia reduced customs duties on fuel imports to an excessive retail price of gasoline."

The magazine stated that at regional level, Zambia whose GDP per capita of US$1,359 was followed by Malawi which had a pump price of US$6.74 per gallon with a GDP per capita of US$756.

Moçambique, whose GDP per capita was at US$796, had its pump price for petroleum at US$6.62, and was followed by Zimbabwe at US$6.46 per gallon against a GDP per capita of US$156.

The other countries in the region included Tanzania with a pump price of US$5.88 and the GDP per capita of US$1, 209, trailed by South Africa whose GDP per capita stood at US$9,736 while its pump price was at US$5.11 per gallon.

Botswana, which had the highest GDP per capita in the region at US$13, 418, pegged its pump price at US$4.87 per gallon and was followed by DRC with a pump price of US$4.69 per gallon while the country's GDP per capita was at US$298.
The rest were Namibia at US$4.08 per gallon against a GDP per capita of US$5, 175 and Angola had the region's lowest pump price at US$2.02 and a GDP per capita of US$5,444.

Labels: FUEL, INFLATION

posted by MrK @ 5:16 AM