By SILUMESI MALUMO
THE devaluation of the Kwacha may lead to the fuel increment, Energy Regulation Board Vice Chairperson Ngande Mwanajiti has warned.
Mr Mwanajiti said ERB priced the fuel according to how the Kwacha was per-forming against the dollar.
Mr Mwanajiti told the Daily Nation in an interview yesterday that the country im-ported crude oil, therefore, a pump price adjustment was expected if the exchange rate increased.
He said ERB could not maintain the price of the commodity when the exchange rate had increased.
Mr Mwanajiti said ERB would always act according to what was trading on the in-ternational market, saying currently the exchange rate had increased and the price of fuel could slightly change.
“The ERB is a fair firm energy regulator, so what happens is that we act according to the exchange rate. We do import crude oil so we price according to how the Kwacha is performing against other cur-rencies,” Mr Mwanajiti said.
And Mr Mwanajiti has said the trend would only come to an end if the country reached at the point where it would be able to produce the commodity.
He said the trend would remain the same because the country was dependent on the imports.
Mr Mwanajiti was reacting to the report released by NKC African Economics, a South African-based Think Tank organisa-tion saying that sharp fuel increment was likely to happen due to poor performance of Kwacha against other currencies.
NKC predicted in its report published last week that a fuel price increment was im-minent in view of the weak Kwacha’s per-formance against major currency convert-ibles by rising crude oil prices on the in-ternational market.
And when contacted ERB Communica-tions Officer Kwale Mfune told the Daily Nation that the institution would give a comprehensive response on the matter soon. – Daily Nation