In a significant move, the Energy Regulation Board (ERB) has announced a reduction in fuel prices for May 2025, with petrol seeing a drop of K2.84, diesel decreasing by K2.85, kerosene reduced by K2.68, and Jet A-1 dropping by K3.07. The new prices are set to come into effect at midnight on April 30, 2025, and will remain valid until further revisions are made by the ERB.
The reduction in fuel prices is a welcome relief to many consumers and businesses across the country, especially considering the rising cost of living. ERB’s announcement highlights the positive impact of the recent changes in the energy sector and the broader economy.
Impact of the Open Access Regime for the Tazama Pipeline
One of the key factors contributing to the price reduction is the successful implementation of the open access regime for the Tazama Pipeline, which came into effect in April 2025. This regime, designed to improve transparency and efficiency, has shown early signs of success, according to Ministry of Energy Permanent Secretary for Technical Services, Peter Mumba.
Mumba expressed confidence that the open access regime would continue to contribute to the stabilization of fuel prices. The initiative allows multiple oil companies to access the Tazama Pipeline, creating a more competitive market and fostering better pricing for consumers.
Appreciation of the Kwacha Against the US Dollar
ERB Board Chairperson James Banda attributed the reduction in fuel prices to the appreciation of the Zambian Kwacha against the United States Dollar. The strengthened Kwacha has led to a decrease in the cost of importing fuel, directly influencing the price adjustments for May 2025.
“Since the last fuel price review, the appreciation of the Kwacha has helped cushion the impact of global oil price fluctuations,” Banda said in a statement. The appreciation of the national currency is seen as a crucial factor in reducing the burden of fuel costs on the local population.
New Prices Set to Provide Relief to Consumers
The reduction in fuel prices is expected to have a ripple effect throughout the economy, benefiting consumers who rely on transportation for their daily activities and businesses that depend on fuel for operations. With the lowered prices, businesses in sectors like transportation, manufacturing, and agriculture may see operational costs reduced, potentially leading to lower prices for goods and services.
Looking Ahead: Future Fuel Price Adjustments
As fuel prices remain a key factor in the cost of living, the ERB’s pricing adjustments will continue to play a crucial role in the economic landscape of Zambia. While the May 2025 reduction provides some relief, it remains to be seen whether the trends in global oil prices, the exchange rate, and local policies will continue to support further reductions or lead to potential increases in the future.
For now, however, consumers can look forward to the reduced fuel prices, which will go a long way in easing financial pressures for many Zambians. The ERB’s decision also demonstrates the importance of a stable energy sector, with policies that encourage competition and improve efficiency.
The new fuel prices for May 2025 are a promising sign of progress in Zambia’s energy sector and are expected to provide much-needed relief to consumers across the country.