THE current fuel shortage should be addressed quickly to avoid jolting the country’s economy, Bank of Zambia (BoZ) governor, Caleb Fundanga has said.
Dr Fundanga said on Radio Phoenix monitored in Lusaka yesterday that the fuel shortage may lead to a rise in the cost of production and derail the revised inflation target of 12 per cent set for the end of this year.
“Authorities should actualise the measures taken so that the situation is normalised, otherwise this will have a devastating impact on the economy,” Dr Fundanga said.
Apart from the inflation target of 12 per cent, the Government also projected to achieve year-end economic growth of 4.3 per cent in 2009.
Meanwhile, Finance and National Planning Minister, Situmbeko Musotwane has said the Government would this week sign a statutory instrument to waive import duty on fuel to allow oil marketing companies (OMCs) source finished petroleum products at affordable prices.
In an interview in Lusaka yesterday, Dr Musokotwane said once the statutory instrument was signed, it would allow the OMCs to bring in petroleum products and help avert the fuel shortage.
He said the decision to suspend the 25 per cent duty on imported fuel was done in good faith and that the decision should be supported by all Zambians interested in seeing the situation normalise.
Dr Musokotwane said the decision to waive duty on fuel should not be politicised and reiterated the Government’s commitment to ensuring that fuel supply was normalised to enhance productivity.
“The recently suspended 25 per cent import duty on fuel will be implemented before the end of the week and we feel this should not be politicised,” he said.
Energy Minister, Kenneth Konga said the Government had decided to waive duty during the period of the shutdown of Indeni oil refinery.
The refinery was closed for maintenance on Thursday last week and will reopen during the first week of November.
Meanwhile, the shortage of petrol in Lusaka and other parts of the country has persisted with most filling stations being besieged by motorists.
[Times of Zambia]
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useless leaders
You people. I’m trying hard not to hate RB and this incompetent govt. Im honestly trying hard to look for something I can convince myself that they are doing well and on top of.. honestly… Instead of sitting his butt down in Lusaka and sorting out this mess. as usual when there is a crises Rubbish B is flying all over the place least concerned. for him it doesn’t matter how long a problem persists. It’l sort itself out.. he just does care about Zambia.. He’s just not up for the job..
I still cannot understand how anyone could have voted for this guy last fall.. I know people who actually voted for Rubbish B.. Today they cannot lift their chins in shame.. We should know Rubbish when you see it.. Sorry after death doesn’t help.
What economy?? there is no economy in Zed!!!!
But how come the minister was saying there was no fuel shortage and that there is plenty of fuel???
Honestly.. They are the least ambitious and LAZIEST people I’ve ever seen… The’ve failed to run INDENI(The strategic partner KK found has even run away), failed to run Nitrogen Chemicals, failed to run PTC (ZAMTEL), failed to run ZESCO, failed to run MAAMBA Collieries in an energy dependent world.. honestly.. These are key industries.. put aside profit objectives.. but one should be ambitious enough to want to rejuvinate and expand on these key infrastructure and projects tripling their capcity just for the sake of pride.. Zambia’s pride.. Lookat the pride with which IRAN is undertaking ambitious projects.. Look at Brazil and how ambitiously they are running state own PETROBRAS and their space ambitions.. laziness is hindin behind the Capitalist skirt of Govt should be running and…
But how come the minister was saying there was no fuel shortage and that infact there is plenty of fuel??? Can he tell us where they are keeping it!!!!!!
No one wants to work .. no one wants to think… How can GOD give us brains (I believe Zambians are very intelligent people) but make these guys lazy at the same time… No one wants to work.. Say what u may.. but KK whipped everyone to work.. Anyway.. We the will have our chance to move ambitiously on massive projects in the future when the likes of Banda will be long dead… Sorry.. but it hurts.. We lost the pride we had when we used to say ZCCM. National pride. Look at our friends. You say BP anywhere in the world.. feel the power.. PetroBras.. Im sorry but these so called trained economists are no good for countries trying to develop their industries.. they are lazy and dont like the smell of Oil or the heat.. lazy…
#8 MAMA G … The minister was saying that because like his boss , he is LAZY extremely LAZY.. too lazy to get off his butt. his the ground.. visit each major fuel DEPOT- BP- Chevron- ENGEN- TOTAL. Hit to the border to ensure trucks ar ebeing cleared.. report to the nation with real information all the step of the way.. round up all the key players and have meeting AT there premises where he can observe.. Not sleep at all auntil its done.. he’s just in the offie waiting for the phone to ring and peopel are telling him what he wants to hear.. and thats the rubbish he’s telling us..
Let us take the leaders who are supposed to be running this country to task. They should be held accountable!!! In Zambia the problem is the buck stops at no one. Those days I still used to write exams, I remember very well how bad I used to feel when I fail exams because it is an indication of alot of things which could be: You did not study when you were suppose to, instead you were busy involved in other none value adding activities. You did not understand the course content well because it is way beyong your capacity. You are dull. The list is endless. In the end because you have failed you do not progress in your studies. You cannot give a failure more responsibilities?
Digga l fully understand your disppointment. Honestly we cant have those so called educated Ministers(one wonders were they got their degress) and fell to plan. We dont need magic to plan for fuel demands. These chaps are all incompetent. They are lazy and very selfish. They are alot of reputable oil companies which can supply us with enough stock on time but baficolour aba choose to source from their friends. Please change,you are running a country not your disfunctional homes. Spare us we need proper services. Why are you taking us backwards? And for how long are we going to be talking about problems at Indeni? Find a long lasting solution period….
Can someone tell me, when Indeni is shut down for maintenance, is it not a planned maintenance? Why are we so bad at contingency planning? Today its fuel, but it could be anything else from malaria drugs or any other products that rely to an extent on imports. The key is that we should plan for such eventualities so that we are not taken by surprise. The current situation will create an artificial shortage which will anable the Oil Marketing companies to make a killing. Can our government not have strategic reserves? These could be used to ease supply in times of shortages, which impacts directly on economic output, as well as supply driven inflation.
Ba RB can you be a little bit serious with the way you are governing the Country pliz twapapata.
Should it honestly take someone to tell you what to do in a crisis like this one.Kuleni pliz…instead of insulting everyone everywhere you go, you can do better than this…….
probably the minister would not notice the fuel shortages simply becoz he either has a diesel engine or his tank is filled up to the brim at his ministry… so really what would he know.
Digga! you are right!!! A country with 45years of the so called independence can’t plan. The focus is by-elections and stupid politiking!!! Very soon, there will electricity crisis because of Zesco capacity generation when the boom comes!!!!! Right now they are not planning for the future growth, Indeni has been a problem for years now but nothing has happened!!!!
ZAmbia will be celebrating 45yrs of political independence but with economic and human capital stagnation. What is there to show off. A look at India, China, Malaysia, South Korea etc. THese have made great strives in development whilst in our case there is nothing to show to the world as our own invention. Aprt from corruption and politiking. Even statements by Caleb Fundanga that we may not achieve 4.3% economic growth and inflation of 12%. that is obvious. The politicians are only preoccupied with their own welfare and Zambia as a whole. W hy should Musokotwane take 2 weeks to sign a statutory instrument waiving off 25% importy duty on petrol yet they knew in advance of the impending shortage. This whole thing is like CHIMBWE NO PLAN. JUST MANAGEMENT BY CRISIS NO DIRECTIONS FROM NOBODY
Senior Citizen has finally gone under-hole. MMD in deep waters, everybody is ensuring that it fails to deliver. I remember a boy who fried seeds and planted them because of intimidation. MMD has enemies within and outside, so things will never improve no matter how they folk their tongues.
The likes of Mulongoti know that u Zambians will just talk and it ends there. So continue your ranting though it will get u know where. I can imagine him advising RB……”Zambians just talk dont worry Mr President we shall win the next elections” All the MMD needs to do is keep a majority in Parliament to avoid impeachment and its working. Who cares about u fookers!!!!
RB you have really Failed us.I wish there was a way of You being Removed from the Office.You are there to work and not Just to enjoy state house and lazy around. Thats why you like travelling to avoid real issues in your Country. You are the most Shameful president i have ever had. I rest my Strenth
another freaking side show at the zambia circus.
just liberalize the energy sector, this is simply common sense! if you cannot, then sell zambia to taiwan, cause you are failing miserably in managing, let alone running, your affairs.
RB and his MMD team are a bunch of failures who must just own up and resign over this energy crisis. Just like he failed to run his enterprises and his small farm, his management incapacity can not be wished away.
A BAD MANAGER CAN NOT BECOME A GOOD MANAGER OVERNIGHT.
They have lamentably failing to secure energy resources which are a key factor for economic development.
Because of corruption and nepotism, they appointed wrong, ill qualified, incompetent people to run sensitive, strategic energy sector positions thereby putting the country at grave risk of serious economic ruin worse than HIGH TREASON.
THIS IS CLEARLY ECONOMIC SABOTAGE
ZESCO IS BLOWING UP PEOPLE’S EXPENSIVE EQUIPMENT, INDENI IS NOT SUPPLYING VITAL FUEL SUPPLIES, MAAMBA COLLIERIES, NO HOPE.
#12 Simon Asked, “Can someone tell me, when Indeni is shut down for maintenance, is it not a planned maintenance?”
Answer: This was not a planned shut down, though one was planned to start later around 18th Oct.
The thing is, Indeni is very old. Like an old car, it can break down anytime. About 10 yrs ago, it burned down and was closed for 2 years. What do you do when you have a breakdown prone car? Rid of it and get a newer one. Similarly, close close down Indeni. Maintaining an old thing is very expensive and does not solve the problem. This is where we are with Indeni. Those costs are being covered by you thru fuel prices. It will be cheaper for Zambia to import fuel than buy it from Indeni. At some point you have to close Indeni or build a new one. It’s an old car, bought…
#22 contd
As for fuel importation, the Govt do not have the skills. Forgive them. They are politicians. It’s like expecting too much from a child. Thank them for what they are able to do and give this job to someone more competent. A mad man is a mad man, talk what you may, you are just wasting your time.
The Big Question is, how much PROFIT or LOSSES does the Govt make since they import crude oil? Dont be surprised if they are making huge losses.
The other Big Question is, when Indeni comes back on line, are they going to have space to store their fuel, and is it going to be cheaper than what the OMC’s have brought in. Remember what happened last time. The Govt had to slap 25% import duty to protect Indeni. Indeni fuel is to expensive. Close it down.
#23 contd
It’s reported Total have pulled out of Indeni and the Govt wants to buy their 50% shares. How much will this be, and does the Govt have the money. Owning 100% means teh Govt will run Indeni. Is this really the most economic way to ensure fuel supply in Zambia. Without transparency, Zambia may end up losing a lot of money thru deals, corruption and fuel prices that do not fully recover costs, just for political mileage. It was because of such mismanagement that we kicked out UNIP and privatised state owned companies. With so much politics, Indeni and the whole fuel supply in Zambia may contribute significantly to the high cost of doing business in Zambia. And to cost of living, making the poor become poorer. Our Govt is not good at running businesses.
If there is one sector which needed very urgent attention, its the energy sector and not ZAMTEL. Energy drives the economic engine. Local and or International Investors should have been pursued with vigour to set up a new Fuel Processing Plant and develop secure fuel inflow systems free of political interference.
What is clearly at play in the current crisis is the need by the MMD to raise funds for their convention by creating an artificial fuel crisis and then profit from it.
ITS ALL POLITICS AT PLAY
Another pawn strategically put in place to ensure that the downfall of MMD is certain. Am sorry guys but its over for you. Lets see what comments people will make on independence day.
Bad management…..An industry like this should ALWAYS have a contingency plan . They call it Risk management. ‘ Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events” Wikipedia definition.
ba fi coulor you even steal fuel,just step down to avoid incoviniences ,Where are we heading to food crisis,fuel crisis awe twanakanaimwe ba mambala.
Time for Change! We need a revolution in Zambia and leadership. we have a lot old folks whose interests is enjoy their last days on earth, there children are enjoying outside the country, no vision . We need young leaders not of course with personal selfish interests but leadership qualities. the fuel situation is embrassing, no planning but above all another 7 years with RB.
Just talk will not take us anytwhere, we need to act and time is now. we need to stand up and not just watching from the terrances. RB has failed us so many times. my question is what next we can’t keep on complaing. Elections are around the corner, All lazy and old folks should be voted out of power in the next elections.
You can certainly see your expertise in the work you write. The sector hopes for even more passionate writers such as you who are not afraid to mention how they believe. All the time follow your heart.