Fuel Prices Decline as Inflation Eases, Bringing Relief to Citizens
Motorists and businesses across the country are celebrating substantial fuel price cuts that came into effect on 1st July, marking the first major decrease after months of rising costs.
The Energy Regulation Board (ERB) announced significant reductions across all fuel types, with petrol dropping by 10.7% from K31.36 to K28.00 per litre, and diesel falling 7.9% from K25.12 to K23.13 per litre.
The price cuts represent a major relief for the population, who have struggled with high transport costs and rising prices of basic goods
ERB officials attributed the reductions primarily to the Kwacha's strong performance against the US dollar, appreciating by 11.2% in June alone. The currency strengthened from K27.06 to K24.03 per dollar.
"The appreciation of the Kwacha has been the main driver of these price reductions," said ERB Board Chairperson James Banda, who also credited the new TAZAMA Open Access initiative for helping reduce diesel costs.
The fuel price cuts are already showing broader economic benefits. The nation’s annual inflation rate dropped to 14.1% in June from 15.3% in May, with the statistics agency specifically citing lower fuel prices as a key factor.
"Lower fuel prices will reduce transport costs, which in turn is expected to bring down the prices of essential goods and services," said Alexander Miti, Eastern Province Chairperson of the Republican Progressive Party.
The price reductions are particularly welcome news for motorbike riders, taxi drivers, and small-scale transporters who depend on affordable fuel for their daily income.
"Lower operational costs mean these workers can take more money home to support their families," Miti explained.
Households using kerosene for cooking and lighting will also benefit, as kerosene prices dropped by 11.3% to K21.98 per litre.
The combination of falling fuel prices and easing inflation could signal a turning point for the economy after prolonged cost of living pressures.