Unstable fuel prices likely to continue in Zambia: economist

Fuel prices are likely to continue to rise in Zambia in the short to medium term unless an exchange rate standing based on the true reflection of the economy's foreign exchange earnings is made, local economist has said.

Times of Zambia Tuesday quoted David Punabantu as saying here Monday that as long as there is no proper system to regulate the exchange rate in the country fuel prices will continue to go up.

He said Zambians should not be experiencing high fuel prices with the current high earnings from copper.

"Fuel prices would only go down if the foreign currency earned from copper was offloaded on the country through the commercial banks," he said.

"Once all the foreign exchange earned from copper sales is transacted through the banks it would serve to devalue the dollar and enable Zambia buy its fuel at a cheaper price," he added.

The Energy Regulation Board last Friday announced a 3 percent price increase for diesel citing rising prices on the international market and the appreciation of U.S. dollar against kwacha.

Source: Xinhua