Stronger Kwacha Delivers Fuel Price Relief, Supporting Inflation Control
The Energy Regulation Board’s fuel price adjustment for February 2026 reflects improving economic fundamentals, firmly supported by a stronger Zambian Kwacha and combined with easing international oil prices.
Effective 1 February 2026, will see petrol selling at K27.88 per litre, down from K29.92 (6.8%), diesel at K24.50 per litre, from K25.11 (2.4%), kerosene at K22.24 per litre, from K23.88 (6.9%), while Jet A-1 is priced at K23.80 per litre, down from K25.53 (6.8%).
These reductions are following Kwacha appreciation of over 10 percent against the US dollar in January 2026, which significantly lowered the landed cost of imported petroleum products, alongside softer global oil prices.
This outcome deeply demonstrates the effectiveness of Zambia’s market-based fuel pricing mechanism, which transparently links domestic prices to external cost drivers.
Economically, lower fuel prices are disinflationary, easing transport and logistics costs and helping to moderate non-food inflation.
Households benefit through reduced transport expenses, while businesses particularly in transport, agriculture, mining and manufacturing gain from lower operating costs and improved margins.
Importantly, these reductions were achieved in previous months without fuel subsidies, reinforcing fiscal discipline and policy credibility.
However, sustained stability will depend on exchange rate strength, foreign exchange liquidity and continued policy interventions as well as continuous investment in fuel supply infrastructure.
