Kwacha depreciation may cause fuel price to go up

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Energy Minister, Kenneth Konga, says the depreciation of the kwacha has negatively affected the importation of crude oil.

Mr. Konga says it has now become expensive to import crude oil because the Kwacha is weak.

The Minister told ZNBC news that government may in future consider revising the price of fuel if the current situation continues for a long time.

He however, said Zambia has enough fuel, which was bought at a low price before the exchange rate went up.

And World Bank Country Manager, Kapil Kapoor, said in a separate interview that the depreciation of the kwacha will benefit exporters.

The Kwacha has depreciated considerably against other major foreign currencies in the last few months.

Government has attributed the depreciation to, among other factors, the pricing of local goods and services in dollars.

Finance Minister, Situmbeko Musokotwane, said in parliament this week that the transactions have had severe effects on the exchange rate.

He however said government and the Bank of Zambia are taking measures to discourage people from pricing their goods and services in dollars.
/ZNBC/NEWS

22 COMMENTS

  2. In simple English or translation from Political English, the Minister is actually saying Zambians brace yourselves for increase in fuel price in the next few days .Please our leaders give hope not fear or uncertainty

  4. The world is in an economic/financial turmoil, why should Zambia be singled out?
    Zambia is not an Island.
    Even Islands have been majorly affected too.

  6. Mwayamba! This government why can’t you provide a solution instead of just say kwacha depriciation will cause fuel to go up.It only in zambia where the government is not providing bailout plan.We want solution

  7. the finance minister had sai,’the depre… was artificial’… that means there will be artificial increments in prices? be helpful to the taxpayers by building a concrete base…

  8. Ideas in Zambia over the ecomical recession are becoming limited. Thats why we need a united Zambia more than ever with all stake holders being involved as the current situation in USA. Above all our presdo should be in the fore front to convene these meetings. Otherwise, i don`t see the MMD government solving Zambian problems alone. However, our current leaders are to proud to consult and listen besides, our opposition parties are also busy campagning even when its not necessary.

  13. Ela naifwe tulandepo! Ubwafya ubu ubuteko tabwishibe what to do about this global financial crisis.When other nations are putting in place packages to stimulate and stabilise the economies, this government is busy telling what what is happening in the country because of the global melt down, what about telling us what they are doing to counter the effects. If you ask me, this government is out of sorts with ifyakucita. Nomba kwati naizanda fye pa ZED!

    • The Zambian govt does not know how to PRIORITISE issues. They will think of giving chiefs 4×4(the one chief Mpezeni is cruising with) before thinking of poverty levels in the country.Some developing countries have put in hefty packages, including giving extra family allowances in such crisis. Kanshi katwishi mwee pa zedi..

  15. These guys will always forewarn us in a way or the other .Let me go and fill up now.Thing is;they use other factors as reason why they are now compelled to do what they will do .In this case bale fwaya ukulunda amafuta

  16. Why is our kwacha steadly depreciating while the dollar steadly remain strong?Is the credit crunch only affecting Zambia?ECONOMISTS please help me to understand this issue.

    • What type of Zambian president are you?
      Dollar is strong against all currencies except British pound. Am not an economists but wondering what type of presido you are indeed.

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