Economist Kelvin Chisanga has warned that the recent upward adjustment in fuel prices for September will sharply increase transport costs, putting pressure on commuters and logistics operators.
Mr. Chisanga added that the rise in transport expenses will in turn push up the prices of food and other essential commodities due to higher distribution costs.
Yesterday, the Energy Regulation Board (ERB) announced an upward revision of pump prices for petroleum products, attributing the adjustment to the depreciation of the Kwacha against the U.S. dollar and an increase in international fuel premiums.
Mr. Chisanga noted that the latest fuel hike is expected to trigger a ripple effect across the economy, with businesses in agriculture, transport, manufacturing, and production likely to face higher operating costs, potentially undermining competitiveness.
“While Zambia recently recorded a decline in inflation, the fuel adjustment may reignite short-term inflationary pressures,” said Mr. Chisanga.
He therefore called on Policymakers to prioritize currency stabilization, expand investment in alternative energy sources, and establish safety nets to cushion vulnerable households.
Angel Kasabo
