LUSAKA, July 1 (AGCNewsNet)– Zambia has cut fuel prices for July following a sharp appreciation of its local currency and early benefits from a regional fuel partnership with Tanzania, the country’s energy regulator said on Tuesday.

The Energy Regulation Board (ERB) announced that petrol will now sell at K28.00 per litre (approximately $1.17), down from K31.36 in June – a 10.7% drop. Diesel prices were reduced from K25.12 to K23.13, while the cost of kerosene declined from K24.79 to K21.98. Jet A-1 aviation fuel was also lowered to K23.94, from K27.08 per litre.

ERB Chairperson James Banda attributed the price adjustments primarily to the 11.2% appreciation of the Zambian kwacha, which gained from K27.06 to K24.03 per U.S. dollar over the past month.

“The exchange rate gains have significantly influenced the downward adjustment of fuel pump prices,” Banda said at a press briefing in Lusaka.

He also cited initial gains from the TAZAMA Open Access initiative, a collaborative framework launched in April with neighbouring Tanzania, aimed at reducing regional fuel transportation and procurement costs.

According to Banda, diesel premiums under the TAZAMA framework dropped considerably, helping reduce Zambia’s import costs. “Petrol premiums under Tanzania’s bulk procurement system fell by 20.33%, from $157.50 to $125.48 per metric tonne,” he said.

The new fuel prices, which took effect at 12:00am local time (10:00pm GMT) on Tuesday, are expected to provide much-needed relief to consumers and businesses alike by reducing transportation costs and easing inflationary pressures in the southern African nation.

Zambia, which imports all its refined petroleum products, regularly adjusts fuel prices in response to global oil trends and exchange rate fluctuations.

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