Energy Expert Boniface Zulu says the Kwacha appreciation and Bank of Zambia intervention in the economy are expected to have positive effects on fuel prices in the month of March.
He has told Phoenix News that this will also reduce the pressure on the Energy Regulation Board -ERB- to adjust fuel prices upwards, thereby improving the welfare of consumers and the performance of the economy.
Mr. Zulu however notes that although the Kwacha appreciation and the bank of Zambia intervention are welcome developments, they are not sufficient to address the underlying structural challenges and vulnerabilities of the energy sector and the economy of Zambia.
He says government should implement fiscal adjustment measures in line with the economic recovery programme and the understandings reached.
Fuel prices in Zambia have been on the rise in recent months, reaching record highs as of February 1st 2024, due to high international oil prices, the depreciation of the kwacha, high import duties and taxes, and supply chain challenges.