Zambia won't cut oil prices despite price drop on international market

Source: Xinhua| 2018-11-29 16:11:18|Editor: Shi Yinglun
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LUSAKA, Nov. 29 (Xinhua) -- The Zambian government on Wednesday said it won't reduce the domestic prices of oil products despite oil prices dropping on the international market.

Reacting to pressure from stakeholders for the government to reduce fuel prices, Chief Government Spokesperson Dora Siliya said that there were many considerations to be taken into account when setting domestic oil prices.

"We all want to have cheaper fuel because it affects the production cycle, but we need to understand that there are many factors we need to take into account such as the exchange rate," she said at the weekly press briefing.

She said the government normally procures stocks of petroleum products in advance and that the factors affecting the pump prices include not only the prices on the international market, but the exchange rate between the U.S. dollar and the local currency.

The current oil stock was purchased at a time when the oil prices on the international market were high, she said, adding that another stock has already been purchased and was due to arrive in the country anytime.

She said, however, that the government might consider the issue of domestic fuel prices if the oil prices on the international market keep going down.

Fears of supply surplus and weakening demand dominated the global oil market recently, causing prices to fall by more than 30 percent in the past two months.