Government has set aside K31.5 billion to avert the possible fuel price increase by Oil Marketing Companies-OMCs.
Energy and Water Development Permanent Secretary, Peter Mumba says government has agreed to subsidise fuel prices to avoid increasing the cost as demanded by OMCs.
Mr. Mumba told ZANIS in an interview that OMCs committed a combined total of 52.0 million litres of diesel and 20.0 million litres of petrol for the period November to December 2007
Indeni Refinery will on November 18 exhaust the 60,000 metric tonnes of petroleum feedstock which was procured in September 2007 and the refinery will undergo a temporary shutdown awaiting the arrival of the next consignment scheduled for November 24,2007.
He explained that OMCs had indicated their intentions to increase the fuel price due to the increased fuel prices on the international market.
The Energy Permanent Secretary explained that government felt it wise to subsidise the cost of fuel to keep the prices where they are.
And Mr. Mumba has said governments in the Southern African Region are making headways in addressing the expected energy deficit.
He noted that the looming energy deficit is a problem that will affect all SADC countries hence the need to pull resources togethr through arrangements like the interconnector project.
He said all countries are working hard to make the issue bearable.
Meanwhile, Zambia Electricity Supply Corporation-ZESCO Managing Director, Rodney Sisala says he is confident that the expected energy deficit will be addressed.
Mr. Sisala said the Southern Africa Power Pool-SAPP has categorised projects to look at priority, medium and long term projects to address the problem.