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Operators, economists happy with fuel pricing

Time Posted: September 20, 2010 9:06 am

Tour operators and economists have welcomed Government’s decision to introduce uniform petroleum pricing which has harmonised the retail prices for petroleum products across Zambia.

Tourism Council of Zambia (TCZ) welcomed the uniform petroleum pricing announced by the Energy Regulation Board, saying it would benefit the people and businesses, especially in rural areas.

The new prices came into effect yesterday. Petrol would now cost K7,639 per litre; diesel will cost K6,999 per litre, while kerosene will cost K5,008 per litre across the country.

TCZ chairperson Mark O’Donnell said in Lusaka yesterday that his organisation was happy with the uniform pricing structure.

“We only hope that it won’t cause any shortages in the rural areas. You recall that this was an old system and suppliers used to shun supplying the rural areas because of the transport costs,” O’Donnell said.

He, however, said the pricing system would benefit the country.

Mr O’Donnell said the organisation was happy with Government’s commitment to the tourism sector.

“We only hope that it won’t cause any shortages in the rural areas. You recall that this was an old system and suppliers used to shun supplying the rural areas because of the transport costs,” O’Donnell said.


“We are happy the Government recognises the potential of the tourism sector, the sector is a source of employment. We want to ensure more jobs are created,” he said.

Economics Association of Zambia president Noel Nkhoma welcomed the development and said the next step should be for the Government to reduce the high taxes that went with fuel prices.

Mr Nkhoma said there was need to review the fuel costing structure in Zambia, which currently had an average of 40 per cent tax.

“As much as we welcome the uniform pricing mechanism, the Government should also consider knocking off some of the taxes on fuel which are high,” he said.

United Liberal Party president, Sakwiba Sikota also welcomed the Government’s decision to introduce a uniform price of fuel.
Mr Sikota, who is Livingstone Central Member of Parliament, said the move by the Government was long overdue.

“This is something I have been fighting for in the last eight years and it will have an effect on many things.

“The cost of rehabilitating and maintaining roads will be reduced,” he said.
[ Times of Zambia ]

11 Comments

  1. vote
    flag Fuji says: Fuji
    September 20, 2010 at 9:32 am |

    Good development …but how are we going to address distribution problems? With uniform prices, do you think those greedy OMCs will ever deliver a drop of fuel to Chavuma, Shangombo, etc? Just what will be the incentive for the OMCs or any businessman? I’m afraid more policing lies ahead!

    Reply
  2. vote
    flag PF UPND JEALOUSY says: PF UPND JEALOUSY
    September 20, 2010 at 10:31 am |

    this will make it easy for the rural dwellers to travel and do business. we wont need to carry containers of fuel in our vehicles as we travel to the country side. MMD is really making life easy were it can. HERB once again job weldone. you have my vote and that of my wife and kids

    Reply
  3. vote
    flag brother Z says: brother Z
    September 20, 2010 at 11:47 am |

    it a welcome ideal to have uniform fuel price this will bring development in all sectors of enconomy in the country. the other prooblem this government need to look into is the shortage of fuel in rural areas.

    Reply
  4. vote
    flag Romantic Monk says: Romantic Monk
    September 20, 2010 at 12:40 pm |

    Sata talked about this in the previous elections, especially 2006 elections. He was comparing why the price of Coca Cola and Mosi are uniform every where yet the price of fuel changes from town to town. Kashi PF has got policies which the MMD are now copying.

    Hope the MMD have got the knowhow and mechanism to implement this thing especially looking at the observation of Mr. Mark O’Donnel. Long live the Mother Land!!!!!

    Reply
  5. vote
    flag PF Economist says: PF Economist
    September 20, 2010 at 1:46 pm |

    3 Romantic Monk, what Mr Sata said in 2006 election campaigns was already written in the 2005 revised National Energy Policy of the MMD government, what remained was to devise the mechanism without causing damage to the economy. I have also learnt that when Mr Sata was campaigning in 2008, he promised that load shedding would end if he was elected. But apparently there was no magic about that, Mr Sata knew that ZESCO was about to restore some generators which had been under rehabilitation. So it is Mr Sata who copies but because you people are ignorant and don’t read, you are led into thinking that Mr Sata is a man of action or even a genius, sic!

    Reply
  6. vote
    flag Enka Rasha says: Enka Rasha
    September 20, 2010 at 2:33 pm |

    Be uniform but,please make them higher,at least double.

    Reply
  7. vote
    flag Romantic Monk says: Romantic Monk
    September 20, 2010 at 3:06 pm |

    PF Economist, ‘you people are ignorant and don’t read, you are led into thinking that Mr Sata is a man of action or even a genius’
    mind your choice of words!!! You don’t know me and for you to make such a statement is surprising. Check your recrods and you’ll see that Mwanawasa copied most of the things which UPND and PF were saying in their campaigns!!! That’s how Magande et’al where co-opted into MMD by LPM

    Reply
  8. vote
    flag Kitwe Boys says: Kitwe Boys
    September 20, 2010 at 5:12 pm |

    You shouldn’t weaken the strong in order to strengthen the weak. The prudent thing this govt should have done is to reduce fuel prices in the rural areas to much those being charged on the Copperbelt and in Lusaka not increasing the prices in these places. This is a circus. CB and Lusaka uses more fuel than the rural areas, so the increament means higher production costs for goods. I don’t understand how somepeople can start saying this is a well come move. When one is coming from a rural area, of course they pay more for fuel, but they will pay less once on the CB or in Lusaka. What will now happen is that they will now pay more from their place and still pay more once in Lusaka or CB. Who is benefiting, lets be objective countrymen and stop these people from taking us for a ride.

    Reply
  9. vote
    flag Kitwe Boys says: Kitwe Boys
    September 20, 2010 at 5:16 pm |

    The idea is brilliant, but what is wrong with it is the fact that fuel is being increased in Lusaka and the Copperbelt.

    Reply
  10. vote
    flag H.H. Sata says: H.H. Sata
    September 20, 2010 at 9:29 pm |

    7 Romantic, don’t be childish, if you wanted me or everybody else to know you, you would be using your real name and you would have told us your credentials, e.g. economist, accountant, engineer or something like that. As it is, I don’t know you and I don’t want to know, it’s not necessary for debate on LT.

    Reply
  11. vote
    flag VJ - Your days are numbered says: VJ - Your days are numbered
    September 21, 2010 at 12:34 am |

    Results of this campain strategy are as follows:

    1. shortage of fuel in rural areas
    2. High prices of fuel in rural areas due to inadequate supply
    3. Friction between gvt and OMCs due to inadequate supply to rural areas esp that the gvt does not run any filling station.. why send my truck to mpulungu to sale 35000 ltrs of fuel at 7 pin if I can sale it at the same price in lsk?
    4. More fuel on black market in rural areas.
    5. High bus fares in rural areas because of fuel shortages
    6. immobile mobile clinics

    Reply

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