By Kalonje Mumba,
Energy expert Johnstone Chikwanda says the recent reduction in pump prices could be sustained for some time, provided key economic fundamentals remain stable.
Speaking in an interview, Mr. Chikwanda explained that the appreciation of the Kwacha has been a major factor behind the fuel price reduction, noting that fuel procurement is largely influenced by movements in the exchange rate.
He said if the local currency continues to perform well against major international currencies, fuel prices are likely to remain stable or ease further.
Mr. Chikwanda also pointed out that relative stability on the international oil market has helped cushion local pump prices, contributing to the recent downward adjustment.
Recently, the Energy Regulation Board (ERB) announced a reduction in pump prices, with petrol reduced from K29.92 to K27.88 per litre, diesel revised from K25.11 to K24.50 per litre, kerosene reduced from K23.88 to K22.24 per litre, while Jet A-1 was cut from K25.53 to K23.80 per litre.
The expert noted that continued currency stability and favorable global oil prices will be key to maintaining the current fuel price trend.
