The Energy Regulation Board (ERB) has ruled out the possibility of adjusting the fuel prices downwards despite the marginal appreciation of the kwacha against the US Dollar.
Briefing journalists in Lusaka this morning, ERB Executive Director Langiwe Lungu says in the first quarter of 2016, there were no petroleum price adjustments saying this was against the backdrop of the kwacha depreciation which cancelled out the benefits that would have accrued following reductions in oil prices on the international market.
Ms Lungu says the price of Murban Crude Oil, which Zambia imports as part of feedstock, dropped by 35% from US$57.70 in July to US$37.25 in December 2015 adding that the benefits of this were negative by the kwacha which depreciated by 42% from K7.65 to K10.84 per US Dollar during the same period.
And Ms Lungu has disclosed that ERB issued 26 standard licenses during the first quarter of 2016and that 24 were in petroleum sub sector, while one was issued to Copperbelt Energy Cooperation (CEC) for electricity supply and another license was issued for the solar sector.
Meanwhile, the ERB Executive Director says following audits and inspections conducted in the last quarter of 2015 and anomalies identified thereof, the board summoned seven licenses for various breaches of their license conditions.
Ms Lungu says these are Zesco Ltd, Engen Petroleum Ltd, Kobil Zambia Ltd, Ravasia Petroleum Ltd, Oasis Oil Ltd, Alpha Enterprises Ltd, and LBM Investment Ltd.