Introduction

Diesel plays a vital role in Zambia’s economy, influencing transportation, agriculture, mining, and manufacturing. It serves as the primary fuel for heavy-duty vehicles, farming equipment, and power generation in remote areas. The pricing of diesel, therefore, affects both household expenses and national development. Zambia, being a landlocked country, relies heavily on fuel imports from global suppliers, particularly for EN590 diesel—the standard low-sulfur diesel widely used in the country.

Tracking changes in diesel prices helps consumers, businesses, and investors plan more effectively. This article explores diesel price developments in Zambia, particularly in January and February 2025, examining the causes behind the price movements, the current rates, and the broader economic implications. The Energy Regulation Board (ERB) of Zambia, which governs fuel pricing mechanisms, plays a central role in maintaining transparent and fair fuel costs across the nation.

Diesel Price In Zambia

Diesel price in Zambia is regulated by the Energy Regulation Board (ERB) through the Import Parity Pricing (IPP) model. This model factors in international oil prices, exchange rates, transportation costs, and import duties. Zambia’s diesel prices are revised monthly depending on fluctuations in the global oil market and the local value of the Zambian Kwacha.

As of early 2025, the diesel Zambia uses is largely EN590 diesel. EN590 is a low-sulfur diesel fuel standard that helps reduce vehicle emissions and improve engine performance. This diesel grade is essential to meet modern emission standards and is commonly imported from global markets, particularly the Middle East and Asia.

Diesel pricing is critical to economic stability in Zambia. When fuel prices rise, transportation and commodity prices follow suit. In contrast, when prices fall, they offer temporary relief to the public and industries. Thus, Zambia's diesel price not only reflects global trends but also directly affects inflation and the cost of living.

Current Diesel Price In Zambia

As of March 2025, the current diesel price in Zambia remains steady at ZMW 32.54 per litre. This price is approximately USD 1.13 at the prevailing exchange rate and is slightly below the international average diesel price of USD 1.15 per litre. The ERB decided not to change the price in March because international diesel costs decreased slightly by 2.23% while the Kwacha depreciated by 1.09%.

Despite these minor changes, the ERB maintained that they were not significant enough to trigger a price adjustment under their pricing threshold, which requires a fluctuation of at least ±2.5% in wholesale prices. As a result, diesel consumers in Zambia continue to pay the same rate set in February 2025.

From a regional standpoint, Zambia’s diesel price is relatively competitive compared to neighboring countries like Zimbabwe and Malawi. This makes cross-border fuel smuggling both a risk and a policy concern, prompting authorities to maintain strict controls over fuel distribution and supply.

Diesel Price In Zambia February 2025

In February 2025, the diesel price in Zambia was increased by ZMW 0.11, from ZMW 32.43 to ZMW 32.54 per litre. This hike followed a notable 6.41% increase in international oil prices, with diesel rising from USD 86.10 to USD 91.62 per barrel. Simultaneously, the Zambian Kwacha experienced a mild depreciation, moving from K28.22 to K28.36 against the US Dollar.

The ERB cited these two primary factors—rising global diesel prices and a weakening local currency—as the main drivers of the price adjustment. This change was part of the regulatory board’s routine monthly review based on international fuel trends.

Importantly, the diesel sold in Zambia meets the EN590 specification, meaning it complies with European standards for low-sulfur content (maximum of 10 ppm). This ensures cleaner combustion, protects vehicle engines, and aligns with Zambia’s efforts to reduce greenhouse gas emissions.

Diesel Price In Zambia January 2025

In January 2025, the price of diesel was also ZMW 32.43 per litre, before the minor increase implemented in February. This price had been relatively stable for several months due to minimal changes in the global oil market and a consistent exchange rate. However, the ERB had been closely monitoring fluctuations and signaled that adjustments might be necessary if price indicators shifted significantly.

During this period, the international benchmark prices for diesel were relatively low, making it easier for Zambia to maintain stable domestic pricing. The Kwacha held steady in early January, providing a buffer against price hikes. However, due to slight movements in both oil prices and currency exchange rates later in the month, the ERB projected a potential increase—which did materialize in February.

The fuel in circulation during January continued to be EN590 diesel, which is required for compliance with Zambia’s environmental and fuel quality standards. Despite its slightly higher cost due to importation, EN590 diesel remains essential for the country’s long-term sustainability goals.

Conclusion

The diesel price in Zambia during January and February 2025 reflects the country’s delicate balance between global oil trends, currency stability, and domestic fuel policy. With EN590 diesel being the standard, Zambia remains committed to importing cleaner and more efficient fuel to protect both its people and the environment.

The Energy Regulation Board’s use of the Import Parity Pricing model ensures that consumers are protected from extreme volatility while still keeping prices in line with global markets. The slight increase in February and the price hold in March underscore this commitment to transparency and economic equilibrium.

As diesel continues to power the Zambian economy—from maize fields to mining trucks—the country must remain vigilant in fuel price regulation. Efficient logistics, stable currency management, and diversified sourcing strategies will be vital in ensuring that Zambia can sustainably manage diesel prices in the months and years to come.

Whether you are a fleet operator, a smallholder farmer, or a logistics manager, keeping a close eye on diesel price trends in Zambia—especially EN590 diesel—can help you plan for a more efficient and cost-effective future.