The Zambian Government has cut the price of fuel by 25 percent which should help the country’s copper miners which have been suffering from low metal prices and rising costs.
Posted: Tuesday , 23 Dec 2008
LUSAKA (Reuters) –
Zambia’s government on Monday announced an almost 25 percent cut in fuel prices, a move that followed pressure from copper producers, who have been hurt by the combination of falling metal prices and high energy costs.
In a statement the state-run Energy Regulation Board (ERB) said diesel prices would fall to 5,478 Zambian kwacha ($1.10) per litre, while petrol would cost 5,818 kwacha per litre.
The ERB said the price cuts resulted from lower global oil prices, which have fallen on fears of a global recession.
Foreign investors in Zambia’s copper mines had said the fuel price cuts were needed to help offset higher production costs at the mines, the country’s economic lifeblood.
Mining operations use considerable amounts of diesel and other refined fuels in their daily operations. (Reporting By Shapi Shacinda; Editing by Paul Simao and Anthony Barker) (Lusaka newsroom +260-977843609/260-955779523)
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