Fuel pump prices remain unchanged-ERB

The Energy Regulation Board has announced that pump prices of fuel products will remain unchanged following the introduction of Statutory Instrument number 125 of 2020 on Value Added Tax (Zero-Rating Amendment) order by government.

The ERB disclosed that the order will have no effects on the current pump prices of petroleum products across the country.

The ERB Board Chairperson disclosed that the SI, which was effected on January 1, 2021, responds to the various changing variables as a result of the exchange rate and its effects on the pricing structure of petroleum products.

Petroleum prices in Zambia are determined through the Cost-Plus Pricing Model (CPM). This model has been in effect since January 2008, after the Import Parity Pricing Model which had been in use since 2004 was discontinued following concerns raised by stakeholders[1]. The CPM is used to determine prices for each cargo and provides for longer intervals of price stability. It therefore takes into account all costs associated with the purchase of the feedstock.

[1] ECONOMIC REGULATION – Determination of Wholesale Prices, Energy regulation Board, 2008