Fuel Prices Zambia
Fuel Pricing Policies
Pricing policy: Government sets wholesale prices according to a cost-plus formula. Government adopted a uniform pricing mechanism in Sep 2010, to be implemented in phases, for gasoline, diesel, and kerosene sold at filling stations. Uniform pricing is meant to be self-financing and achieved through the Rural Fuel Subsidy Fund. Recently prices have been adjusted infrequently, raising concerns that they may have fallen below cost-recovery levels. Government has frequently reduced or suspended excise taxes and customs duties on petroleum products, especially when the country’s sole refinery, Indeni, is shut down, such as in Oct 2009. There is a 25% import tariff. In August 2008, after the refinery shut down twice, oil companies began importing petroleum products directly. In Jan 2009, the import duty was increased from 5% to 25% to protect the refinery and Tazama Pipelines, which was left with a large inventory surplus.
(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
Fuel Prices and Trends
|Gasoline 95 Octane||Diesel|
|in Local Currency||
* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil
Fuel Price Composition
Price composition for one litre of Gasoline 95 Octane as of 2010/04/01.
Pump Price applies for the city of Chipata which has a medium gas price niveau.
According to several press statements, subsidies exist, but the actual value was not stated. Value of Commercial Mark-Up is therefore also unknown.
At a Glance
Actual Values of subsidies, tranportation costs and commercial mark-up could not be found.
Statistics are a bit out-dated.
Sources to the Public
|Type of Information||Web-Link / Source|
|Price Composition||http://www.erb.org.zm/content.php?viewpage=stmt (Mainly missing, some information)|
|Pump prices and margins||http://www.erb.org.zm/content.php?viewpage=avpp|