Standoff Between Iran And Us Likely To Lead To Rise In Fuel Pump Prices

By Balewa Zyuulu

Energy Expert Johnstone Chikwanda says the standoff between Iran and the US government will have a negative impact on fuel import dependent countries like Zambia.

Mr. Chikwanda tells Phoenix News that crude oil prices on the international market are influenced by different factors ranging from demand to geopolitical tension among others.

He explains that any disruptions to the oil supply chain due to geopolitical tension can have severe consequences on oil importing countries especially those that have no strategic petroleum reserves.

Mr. Chikwanda states that the tension between the two countries has the potential to influence the price of fuel in the long run especially that fuel pump prices in Zambia are influenced by exchange rate and the crude oil price on the international market.

Oil-producing Iran has been engulfed in a fight with the United States after the US assassinated Iranian military commander Qasem Soleimani in an US drone strike in Iraq on Friday on the orders of President Donald Trump.

Meanwhile, Energy Minister Mathew Nkhuwa says the 4 percent rise in the price of crude oil on the international market will not affect local fuel pump prices.

Mr. Nkhuwa has however, stated that the next consignment of crude oil the country will procure will be more expensive given the surge in global prices.

He has told Phoenix News that government is waiting for technocrats to advice after three months whether or not to increase the fuel pump prices again.

PHOENIX FM NEWS

The post Standoff Between Iran And Us Likely To Lead To Rise In Fuel Pump Prices appeared first on Phoenix FM.