MAINTAIN KWACHA STRENGTH TO SUSTAIN FUEL PRICE STABILITY – ECONOMIST
Economist Kelvin Chisanga has emphasised that sustained stability of fuel prices will depend on exchange rate strength and continued policy interventions.
In a statement issued on Sunday, Chisanga cautioned that foreign exchange liquidity and investment in fuel supply infrastructure remain critical.
He underlined that recent reductions were achieved without subsidies, reinforcing fiscal discipline and credibility.
Chisanga explained that households are benefiting through reduced transport expenses.
He pointed out that businesses in transport, agriculture, mining, and manufacturing enjoy lower operating costs.
Chisanga highlighted that improved margins are a direct result of falling fuel prices.
He remarked that lower fuel prices are disinflationary, easing transport and logistics costs.
Chisanga stressed that this helps to moderate non-food inflation.
He observed that Zambia’s market-based fuel pricing mechanism has proven effective.
Chisanga noted that domestic prices are transparently linked to external cost drivers.
He explained that the Kwacha’s appreciation of over 10 percent in January 2026 lowered import costs.
Chisanga observed that easing international oil prices further supported the reductions.