Gasoline, diesel prices fall in Zambia amid currency appreciation
(MENAFN) James Banda, Chairman of Zambia's energy Regulatory Board, announced a significant decline in petrol and diesel prices, attributing the reduction to a 7 percent strengthening of the local currency against the US dollar during the review period. According to Banda, the price of petrol has decreased from K35.56 per litre to K31.58 per litre, while diesel prices fell by 6 percent to 29.34 Zambian kwachas per litre.
The recent appreciation of the Zambian kwacha, where 1 US dollar equals 24 Zambian kwachas, has contributed to the price adjustments. This reduction in fuel prices comes amidst broader economic challenges in Zambia, including a significant rise in inflation on June 27 and the slowest GDP growth in two years, largely attributed to adverse weather conditions such as drought.
In response to the currency's recent gains, Zambia's central bank has unveiled plans to criminalize the use of foreign currencies within the local economy. According to a draft document released by the bank, individuals engaging in transactions with foreign currencies could face penalties including up to ten years of imprisonment or fines. The move aims to bolster the use of the local currency, as the kwacha saw a notable 7 percent appreciation on the final trading day of the week, marking its largest increase in four months.
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