Zambia: Higher fuel costs will drive up food prices

LUSAKA: A raft of fuel price hikes that will affect agricultural production costs as well as consumer pockets is expected to drive food price inflation in Zambia, where about two-thirds of the population live on US$1 or less a day.

The government has announced an immediate petrol price rise of 15 percent, soon after a 10 percent excise duty on diesel came into effect on 1 January 2010.

According to a World Bank study citing average prices when the oil crisis peaked in 2008, the landlocked country had the highest fuel prices in southern Africa.

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