Government has described as misleading and erroneous reports in some sections of the media suggesting that the Energy Regulation Board (ERB) had increased fuel prices owing to the currency rebasing programme.
Mines, Energy and Water Development Permanent Secretary George Zulu dispelled the reports during a media briefing in Lusaka yesterday.
“The Ministry of Mines, Energy and Water Development wishes to inform the consumers and indeed the general public that such reports are indeed misleading.
“We wish to inform the public that the ERB worked within the Bank of Zambia currency rebasing technical guidelines. These were issued in August 2012 in arriving at rebased fuel prices,” he said.
Mr Zulu observed that some reports had indicated that the price of Petrol had increased by 0.06 per cent while Diesel was adjusted upwards by 0.05 per cent at Kobil and Mount Meru service stations.
The reports also indicated that Petrol was selling at KR8.16 (K8, 160) from K8, 155 per litre where as Diesel was priced at KR7.57 (K7, 570) from K7, 566 per litre.
Mr Zulu said the perceived increase was necessitated by rounding off the rebased pump price to two decimal places instead of rebasing it to three decimal places to match the old price.
Mr Zulu explained that the aforementioned guidelines stated that all amounts converted from the old currency to the rebased currency should be rounded off to two decimal places unless stated otherwise.
He said when a third decimal of an amount converted to the rebased currency was equal to or higher than five, the second decimal was raised by one unit and that when the third decimal of an amount converted to the rebased currency was lower than five , the second decimal remained the same.
“The Ministry hereby wishes to categorically state that the ERB has not increased the prices of fuel, not at all. However, the perceived increase is simply the inadvertent effect of rounding off of the retail prices as per Bank of Zambia guidelines from the old to the rebased currency ,” Mr Zulu said.
Mr Zulu warned that the ERB would be left with no choice but to revoke licenses of fuel service stations which were going against the BoZ guidelines on the fuel pricing using the rebased currency.
He also extended a warning to business executives intending to or had hiked prices of their goods and services under the pretext that fuel prices had been adjusted upwardly, when that was not the case.
so the rounding off of those figures have infact resulted in an increace. what a louse defence we have. mr minister I think you can do better than this.
This rounding off is benefiting the seller & costly to the buyer
what a dull minister why did they have to round off instead of leaving the value the way it was for example k8155 to KR 8.15 what is wrong with this value.ERB thinks they are more educated and bigger than the nation hell no.
It is evident that the rounding has resulted in an increase of petrol prices by K5.00 and that of diesel by K4.00 in real sense. What ever you may say fuel is more expensive than it was before rebasing.
“I wish to inform the consumers and indeed the general public that such my report is indeed misleading,” thank you said.
Misleading reports okay….but remember isn’t this the selfsame ERB wasting K50Billion on building a new HQ!!
Ba Jay jay, mulesala ifyakubosa. ERB has not wasted K50 Billion to construct a building along Alick Nkhata Road, but have built a MODERN Sate of the Art building to try and bring Lusaka to the Modern World. How do you feel to be boasting about the infrastructure from the Country where you live even without Proper documentation yet you can not appreciate what other people back home are trying to do? I wonder what kind of a house you have/would build in this modern day and era.
So its money well spent? So you are more than happy to boast about this modern building yet UNZA and CBU are in an appalling state. ERB would have spent half and still got a modern building. I’m very passionate about modern architecture as I’m in the construction industry but at the end of the day its about priorities. I guess that’s Greek to you!
ERB is toothless! Even without them, this country would still manage its energy….
There is a difference between those who by fuel and those who just refuel. The pinch is not felt because they don’t buy. They only come to reliase when they are no longer refueling.