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.
