ERB last week released the following press statement :
The Energy Regulation Board (ERB) has increased the pump price of petroleum products by 7.22% for petrol, 8.75% for diesel and 9.54% for kerosene, while wholesale prices have been adjusted by 11.15% with effect from midnight 17th April 2014.
The exchange rate of the Kwacha against the US Dollar depreciated significantly from K5.40 at the last price review in April 2013 to the current level of K6.20 to the US Dollar by 14.8% cumulatively. This cumulative depreciation of the Kwacha against the US Dollar has been the major trigger for this fuel price increase.
Pump prices are determined based on the cost of each cargo and the exchange rate of the Kwacha to the United States Dollar. In determining prices, the ERB uses the Cost Plus pricing model which operates on the principle that the final price of petroleum products should cover all costs in the supply chain.
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