ZAMBIA has emerged as one of the most affordable countries for petrol in the Eastern and Southern African regions, ranking third among eight nations in a recent comparison by the Energy Regulation Board (ERB).
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According to ERB’s latest review issued by the board’s public relations manger Namukolo Kasumpa, Zambia’s petrol prices are only surpassed in affordability by Botswana and Tanzania.
Kasumpa said for diesel, the country holds the fourth lowest prices in the region, trailing Botswana, Tanzania and South Africa.
She clarified that Zambia’s fuel pricing is based on a cost reflective model without government subsidies and is influenced by global market conditions.
“All petroleum products in Zambia are imported as the country does not produce its own oil. Our pricing structure ensures that all prudently incurred costs in the supply chain are recovered while keeping prices competitive,” said Kasumpa.
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The board added that the country’s fuel prices are determined using the Import Parity Pricing (IPP) model which factors international oil prices, shipping costs and the exchange rate of the Kwacha against the US dollar.
The regulatory body also pointed out that countries with lower fuel prices than Zambia except for Botswana have seaports, which significantly reduce transportation costs.
Kasumpa further explained that while Zambia’s fuel is competitively priced, external factors such as global oil price fluctuations and foreign exchange rates impact the final cost to consumers.
ERB issued its report in response to media claims suggesting that Zambia had the highest fuel prices in the region.
The regulator stated that Zambia’s pricing remains competitive within the regional market and adheres to the petroleum pricing regulations introduced in December 2024.
“The Energy Regulation Board remains committed to ensuring that petroleum prices are fair to consumers while allowing market players to earn a reasonable return on their investments,” said Kasumpa.
By Catherine Pule
