As the Energy Regulation Board – ERB in Zambia was finalizing its new pump price computations after relative peaking of international crude oil prices, The European Council on 31 May announced further sanctions against Russia which have sent prices into another increase spurt.
This announcement has immediately led to a jump in international fuel prices which which are expected trickle down to Zambia and other emerging non oil producing countries. Asia has already reported crude oil price increases of about 4% just a few hours from the announcement.
As if it’s not enough the damage the recent fuel price increases on the back of the Russia – Ukraine conflict have inflicted, the EU council announced further sanctions on the last day of May that will have cost of living implications for most of the world.
The EU council in a statement seen by the Zambian Business Times – ZBT strategy that “to intensify pressure on Russia and Belarus to thwart Russia’s war against Ukraine. The European Council calls on all countries to align with EU sanctions”.
The European Council stated that “the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.
Charles Michel, president of the European Council, stated that the sanctions will immediately impact 75% of Russian oil imports. And by the end of the year, 90% of the Russian oil imported in Europe will be banned.
ERB is expected to issue new prices for fuel pump prices which were anticipated to be largely flat as government has indicated to have no intensions of putting in place subsidies to cushion the economy.
The IMF seeing the adverse economic impact that fuel prices increases have had even in top economies, has since revised its advise and urged governments across the world to consider subsidies for fuel and food.
Food and Fuel prices in Zambia have increased compounded with “no money in circulation” liquidity challenges which is pushing most households with limited to no savings to the brink of destitution. The new dawn government economic management team is yet to announce any measures to combat the high cost of living being experienced by the majority.
