Lusaka, Zambia – May 2026 – Economist Kelvin Chisanga has highlighted that transport and logistics costs remain one of the biggest factors influencing fuel prices in Zambia, despite fluctuations in global crude oil prices.
In a statement shared on the structure of fuel pricing, Chisanga explained that Zambia’s fuel pump prices continue to be heavily affected by the country’s dependence on imported petroleum products and the long distances involved in transporting fuel from regional ports to inland depots and service stations.
Zambia’s Fuel Prices Influenced by Import Logistics
According to Chisanga, Zambia remains a land-linked country with no direct access to the sea, meaning most fuel is imported through ports such as Dar es Salaam before being transported into Zambia.
He stated that transport costs form a major component of the fuel price build-up, alongside other factors such as import parity costs, taxes, storage charges, and distribution margins.
“These costs arise mainly from long-distance haulage of fuel from regional ports such as Dar es Salaam, as well as pipeline and road transportation to inland depots and retail stations across the country,” Chisanga explained.
Why Fuel Prices Don’t Drop Quickly Even When Crude Oil Falls
Chisanga noted that many Zambians expect fuel prices to drop immediately whenever international crude oil prices decline, but the reality is more complex.
He said domestic pump prices often remain high because transport and distribution costs stay constant and continue to affect the final price consumers pay.
“Even when international crude oil prices decline, domestic pump prices may not adjust proportionately due to persistent logistics and distribution costs,” he stated.
Transport Costs Affect Inflation and Prices of Goods
Chisanga further warned that fuel remains a critical input in many sectors of the Zambian economy, including:
transport
agriculture
mining
manufacturing
Because of this, high fuel prices indirectly increase the cost of goods and services, contributing to inflation and higher living costs for households.
“This cost structure has broader implications for the economy, as fuel remains a key input in transport, agriculture, mining and manufacturing,” he said.
Calls for Better Fuel Transportation Efficiency
Chisanga stressed that improving fuel transportation efficiency must become a priority if Zambia wants to stabilize fuel prices and reduce pressure on consumers.
He suggested that stronger investment in bulk distribution systems and better pipeline utilization could help lower the overall cost build-up in the fuel supply chain.
“Improving efficiency in fuel transportation systems, enhancing pipeline utilisation and strengthening bulk distribution infrastructure remain critical policy considerations,” he said.
Fuel Supply Chain Reform Key for Zambia’s Competitiveness
Chisanga concluded that addressing transport costs in the energy value chain is important not only for stabilizing pump prices, but also for improving Zambia’s overall economic competitiveness.
“Ultimately, addressing transport costs within the fuel supply chain is essential not only for price stability but also for improving overall economic competitiveness and easing pressure on households and businesses too,” he stated.
The economist’s remarks come at a time when fuel prices continue to be a major public concern, with many Zambians calling for sustainable long-term solutions to reduce costs.
