FUEL PRICE FLUCTUATIONS WILL CONTINUE, SAYS ENERGY MINISTRY

The Ministry of Energy has announced that Zambia will likely face ongoing fuel price changes due to the new auction premiums from the open-access framework for the national fuel pipeline.

Peter Mumba, the Permanent Secretary for Technical Services, shared in an interview with Phoenix News that the country does not have a fixed fuel pricing model yet. However, recent changes have led to lower pump prices, thanks to auction premiums dropping to around $43 per tonne. He believes this trend might continue in the near future.

Mr. Mumba pointed out that achieving long-term stability in fuel prices relies on oil marketing companies keeping their premium bids moderate during auctions. He mentioned that if premiums stay below $70 per tonne, Zambia can look forward to more stable and possibly lower pump prices.

He also noted that the Ministry is carefully watching how the open-access system performs before taking any steps to reduce price fluctuations. This strategy aligns with President Hakainde Hichilema’s directive from October 2023, which called for a more predictable fuel pricing system to protect citizens from economic shocks.

While he acknowledged the need for action, Mr. Mumba stressed that the Ministry will focus on evidence-based policies rather than rushing into decisions.

GroundTruth Zambia | 29th May, 2025.