Depreciation Of Kwacha To Hike Fuel Prices In Zambia.
The adamant loss in value of the Kwacha is now becoming a rising concern in Zambia’s business sector. The continued depreciation of Zambia’s currency is threatening fuel price hikes, warns the Economics Association of Zambia.
Crude oil prices have sharply fell to US$44 per barrel on the international market, but the benefits of this price reduction are not being felt by local consumers owing to the Kwacha’s rapid fall.
Economics Association of Zambia President Dr. Christian Mphuka said the Kwacha’s continued volatility would adversely affect fuel pricing, fearing an upward adjustment of the commodity to be inevitable.
Dr. Mphuka said apart from the anticipated fuel hikes, cost of other imported goods will keep rising.
The Energy Regulation Board last hiked fuel prices in July to the current K9.87, K8.59 and K6.12 per little for petrol, diesel and kerosene respectively, at a time when the Kwacha traded at K7.78 per US dollar, with inflation for that month pegged at 7.1 per cent.
As it stands now, most businesses are failing to run properly because of the rise in costs of running one. Many shop owners at Manda hill and Arcades shopping center in Lusaka are likely to shut down their operations because they are feeling to pay the high rentals pegged in dollars.