Economist Kelvin Chisanga has warned that Zambia could experience further increases in the cost of living following an anticipated fuel price adjustment expected to be announced by the Energy Regulation Board (ERB) for the month of April.
In an analysis titled “Oil and Fats Set for Cost Growth, April Sees Inflation Pricing,” Chisanga said the expected ERB decision reflects growing cost pressures that are becoming increasingly difficult to contain under the current fuel pricing framework.
He explained that signals from global oil markets, particularly in the Middle East where prices have reportedly reached record highs, combined with exchange rate movements, suggest that an upward fuel price revision is not only likely but may be necessary to maintain cost-reflective pricing in Zambia.
Chisanga noted that from a household perspective, higher fuel prices will have immediate consequences, especially through increased transport costs which will then affect the distribution of food and other essential goods.
He warned that the ripple effect will further tighten disposable income levels, with low and middle-income earners expected to feel the pressure the most.
The economist further stated that the anticipated adjustment highlights Zambia’s vulnerability to external shocks within the energy supply chain, and that a fuel price increase could continue sustaining inflationary pressure and delay relief for consumers already struggling with rising prices.
Chisanga concluded that the expected ERB fuel price review reinforces how global market shifts and currency performance directly impact domestic economic conditions, stressing that exchange rate stability remains key in cushioning consumers from rising costs.
