• Petrol reduced to K26.61 per litre, diesel to K23.25 effective 28 February 2026

• 17% appreciation of the kwacha lowered the local-currency cost of fuel imports

• Adjustments apply nationwide until the next monthly review

Zambia’s Energy Regulation Board (ERB) has reduced fuel pump prices for March 2026 following a strengthening of the kwacha currency, which lowered the domestic cost of importing petroleum products. The revised prices took effect at midnight on 28 February and will remain in place until the next scheduled review.

Under the new national uniform pricing structure, petrol prices were reduced from K27.88 to K26.61 per litre, diesel from K24.50 to K23.25, kerosene from K22.24 to K21.06, and Jet A-1 from K23.80 to K22.39 per litre. The ERB indicated that the downward adjustment was primarily driven by movements in the exchange rate during the February review period.

The kwacha appreciated by approximately 4.17% against the US dollar over the month, strengthening from an average of K19.80 per dollar at the beginning of February to K18.98 by month-end. Because Zambia imports all refined petroleum products and transactions are settled in US dollars, the exchange rate plays a central role in determining the landed cost of fuel. A stronger kwacha reduces the amount of local currency required to purchase the same volume of imported fuel, thereby lowering the base cost used in the domestic pricing formula.

Zambia applies a cost-reflective fuel pricing mechanism under which pump prices are reviewed monthly based on the calculated landed cost of imports, transport and distribution margins, and statutory charges. With the appreciation of the local currency reducing the import component, the overall price build-up allowed for a downward revision across all major fuel categories.

Fuel pricing remains closely linked to macroeconomic stability in Zambia, where exchange-rate performance significantly influences domestic costs in an import-dependent energy market. The ERB stated that the new prices will remain effective nationwide until revised in the next monthly assessment.

By Cynthia Ebot Takang