Government has castigated Patriotic Front (PF) leader Michael Sata for suggesting that the recent 15 percent fuel hike is aimed at subsiding thieves that are involved in oil procurement.
Chief government Spokesperson Lt. Gen. Ronnie Shikapwasha says the statement by the PF leader is untrue, highly irresponsible and provocative.
Lt. Gen Shikapwasha adds that the Mr. Sata’s Statement is only meant to mislead Zambians and promote hatred against President Banda.
In a statement issued to ZANIS in Lusaka last evening, Lieutenant General Shikapwasha explained that the increase in fuel prices has not vindicated Mr. Sata from anything because he still remains an insensitive, hypocritical and manipulative politician who can say anything to gain political mileage.
Lt Gen Shikapwasha said as a government, the regulation of fuel is solely managed by the Energy Regulation Board (ERB) and not as insinuated by Mr. Sata.
He said having been a member of Cabinet in 1998 when ERB Act Cap 436 was enacted, Mr. Sata is aware that ERB is responsible for regulating fuel prices.
He explained that the nation should know that the last fuel prices were reviewed on 22nd December 2008 when petroleum products pump prices were reduced by an average of 24 percent.
Gen Shikapwasha added that this was on account of the dramatic decline in international oil prices and favourable exchange rate of the kwacha against the US dollar.
He noted that since December 2008 both the average international oil prices and cost of feedstock cargoes have gone up significantly as much as 72% while the average international oil prices have increased by an average of 110% over the period February 2009-January 2010.
“Going by the above stated figures, price increases would have averaged 32% as opposed to 15% as announced by ERB on 12th January 2010,” explained Gen Shikapwasha.
Gen Shikapwasha who is also Information and Broadcasting Minister stated that to cushion the economy, the government subsidised the high costs of fuel so as to make it affordable, especially in the context of the global economic recession that characterized the global economy in 2009.
He pointed out that as the global economy is slowly moving out of the recession, the demand for petroleum products is beginning to increase, the international prices of oil have also began to rise.
He disclosed that this is why government cannot continue to subsidise the pump prices hence the 15% average increase instead of the 32% increase that is warranted by the economic fundamentals.
Lt. Gen. Shikapwasha has since expressed sadness at Mr. Sata’s remarks adding that they do not add value to raising a well-informed society.
On 12th January 2010 the Energy Regulation Board announced an increase in fuel pump prices a move that has attracted attention from various sectors of the economy in the country.
Mr. Sata is quoted in yesterday’s edition of the Post Newspaper a having said that he has been vindicated over recent revelations that President Banda would hike fuel prices and that Zambians will now subsidise the President’s corruption.
ZANIS
Im sure when talking he even produces that white scam that forms on the sides of the mouth,always on the defensive,,anger truelly makes one even more ugly than they already are,i wonder what he would look like if he attempted a smile…….would probably look like he has just swallowed a fish-hook
Does this living being called Shikapwasha ever browse through LT? I always wonder what he thinks of himself.
You PF cadres are surely uncivil. Instead of focusing on Mr. Shikapwasha’s statement, you firstly start insulting his physical appearance. This is why people call you thugs, it seems many of you fail to express yourselves in a civil manner.
Woo!…Woo!…Woo!… Bark..Bark… Bark… That is all we know. The master is out and so we must Woo..! Woo! Bark and Bark to protect what seems to be ours for now. Shame on him!!
# 3.If calling someone ugly is an insult,im guilty,but again i remember one Rupiah Bwezani Banda calling a Mr Michael Chilufya Sata “kuipa monga ni satana” (ugly like satan),so are we in your context right to call Bwezani Banda a thug since he failed to express himself in a civil manner
(tiyeni timwe tisangalale)
Smoothcriminal, does that mean if RB jumps off a bridge, then you should also jump off a bridge? By now, you should be able to think in your own lines and dictate your own behavior. If you cannot respect people in authority, the least you can do is respect yourself. Shame on you.
Ya smooth criminal your under attack. No comment
The issue is about this increament and not attacking each other. we need to blog intelligently because a lot of poeple pick ideas from this site. who knows maybe the big man himself checks this site. Let us not attack each other. The increament pains and i know our fuel is heavily taxed. what about reducing some of the taxes imposed on the fuel?.
Ok,,, No more sting language unless of course in self defence. I went to prayers last evening, my sins have been forgiven..and i have forgiven those who haven;t forgiven me.
There is nothing wrong with hiking fuel prices, it happens everywhere, but i see why Sata hightlighted this. Its all about political populance.This is what makes Sata: Sata, he makes headlines on fuel hikes and privatisation of zamtel..issues that can touch peoples hearts. while HH talkes tribal about lambas and RB,,playboy stories…no wonder the post covers Sata much more..HH has feathers, hes not a tonga bull.
Smoothcriminal and Mr. Capitalist, May i propose that a truce be in effect. I respect you two bloggers. Both of you have made your points clear. Am failing to comment because i would have loved to ‘hear’ what each one of you had to say over the story. So, gentlemen?
Ronnie!!! Always on the defensive! It does not matter what Sata says or said! The fact is that this price increase has negative repurcutions on the poor people on the streets – 80% of whom live on less than US$1/day! Whose plight govt has failed lamentably to address. You could be comfortable and be supported by arm chair critics but the general well being of our suffering masses is pathetic to say the least! Take a look at the suffering of people in compounds in LSK for instance! You would cry out loud if you really found out, and the increase is not in their favour, it disadvantages them, and every one will soon pass on the buck! Simply economics!
I’d rather believe the sky is yellow than believe anything that comes out from shikapwasha, mulongoti, and mabenga’s mouths!
I agree. A truce is in order. To that effect, I apologize to smoothcriminal.
Iwe shikapwasha uli chiwelewele, ifintu ngatafili bwino abantu bafwile bailishanya.Mr SATA talufyenye nangu panono.come 2011 ninshi MMD yatoba akaputi kuchulu.Our president MR BANDA abakwati untu balowa ichisole nangu imbwa yabindundula apitanafye umungulu.SHIKAPWASHA leka ukusonsomba mr sata.EPONAPELA
PF leader takes advantage of GRZ’s inablity to explain to the public status on many important subjects. Ronnie and his colleagues in Govt are always caught off guard. What explanation pipo will not believe GRZ position as its too late. The govt need to be proactive. They have all the info on their figure tips why they seat on it until King Cobra comments nobody knows.
#12 Mr. Capitalist, thats the spirit mudala! Now, for goodness sake blog away!!
Apologies Bwana capitalist! nipa friday lelo,im in the mood for budweiser!! Cat Powers shani man, Ba Moze, muli che bigge’
This reverend barks at anything that the Opposition says. He is so distant from reality that he doesn’t realise that the 15% fuel increase will result in a similar increase in all areas of life. From bus fares, mealie meal prices to the cost of kapenta, all with the exception of salaries.
Mr. Capitalist, thanks for apologizing to Mr. Smoothcriminal. He was right. The president, being in power was supposed to show respect if anything respect to himself. A leader leads by examples. Cheers to you all.
capitalist, li to le baaaaaaaaad
No 19 what you have said is uncalled for!As one blogger has put it ” we need to blog intelligently”
But here the facts are clear the prices of fuel have significantly rsen ( according to GOVT 72%) SO THIS HAS been passed on the consumer in an increase of about 15% . Yes it will have a -ve effect but well the reality is the price has gone up. As for Sata he is just being the populist politician that he is making political milaeage and Shika is carrying out his role as Govt spokesman
A weeks back, CSO figures showed how we have amassed foreign reserves, GDP growing and inflation rate got to single digits…. etc.
In this light can one of you bloggers, please help me understand what it means to hike fuel prices (with a chain reaction effect) when we were doing well on the economic indicators?
Ok Ronnie, we agree that there was some 100% increase during 2009 for crude oil, but how come zambia remains the most expensive place to buy fuel in the southern africa region ?. Are you saying the other countries did not experience that increase ?.
The problem is we have to many middle men, more often than not ministers themselves muscling in to be parasitic blood suckers of my pipo. Zambia will now definetly be the mostest expensive place to fly to, to drive to, in Southern africa. Sata could be right for once, big names continue to strangle the energy sector making millions by being middle men, thus hiking prices. Blood sucking dirty parasetic thieves.
ba fee color batudelela fye……
PF UPND President was quoted in the Post where he is attributing the rise of the fuel price to corruption in Government. It is a shame that newspaper editors can publish these disgraceful accusations. Does Mr Sata understand price elasticity of demand in the oil market? Does Mr Sata’s team understand that OPEC (a cartel of oil producing countries) sometimes decreases the global supply of oil so that the wholesale price of this commodity goes up? Does Mr Sata understand how the derivatives market impacts on the price of fuel on the pump price?
Since the Government does not have adequate storage facilities, they could either buy the commodity on the futures market or alternatively build a super tanker and hoard the commodity on the sea.
Word of advice comrades.
The culture of calling fellow Zambians as ‘kaponyas’ is uncivilsed, especially coming from learned individuals as you, bloggers. You will find that ‘kaponyas’ are merely the disadvantaged and weaker persons we all know as we were growing. All of you will relate that you know at least one kaponya and their often tragic home backgrounds. Let us not create a ‘some of us’ seed, which will become our way of representing our more often than not shallow contributions to the blog.
The saga continues. Anyway gentlemen and ladies, if you call your friends “KAPONYA’S ” Expect to be hit back, coz that is also uncivil. agree?
Nyau Dancer, why is Zambia the most expensive in the region then. In Botswana fuel is curretly K1,980 per litre, Zim is K3,256 per litre i.e. Kwacha equivalency. No wonder uli Cinyau………………..makaka iwe!!
There are few if any non oil producing countries in the world that kept their fuel prices constant in 2009. It is therefore surprising that Zambia did so and perhaps commendable. The difficulty with subsidies however is that they tend to benefit those with access and those who make the most noise, not necessarliy the poor. Also the link between fuel prices and the overall price level is not a linear one and price spike of 2007 has evidence that supports it. The bottom line is that as long as we remain an importer of oil we shall always be subject to the effects of what is now a volatile market. As I have said previously the strategic issue at hand are the structural deficiencies in the oil sector and not the price….
Mr shikapwasha would you once atleast agree that fuel increase have an impact on goods and services hence affecting poor majority Zambians? from bus fare to house rental, food,clothing, utilities,chewing gum etc
30
Mwiponta Mukabwela – HOW DO YOU EXPECT HIM TO KNOW WHAT YOU HAVE ASKED WHEN THE GUY HAS NO USE FOR THE FILLING STATION, THE MINI BUS, MEALIE MEAL? EVERYTHING FOR HIM COMES FREE. REMEMBER THE FRENCH QUEEN? SHE WAS TOLD THAT THE PEOPLE COULD NOT AFFORD BREAD. HER ANSWER? LET THEM BUY CAKE. THAT IS SHIKA & Co.
# 29 Peter Cool
Ok structual deficencies…But when the oil reaches indeni, the price is normal for the region. When it leaves indeni to the 1st marketing agent (GRZ ministers own most of these agents) and buy the time the last agent puts his markup we are the most expensive country in the region. If this is not legalised corruption, then it is easy to make money at the expense of the vaunarble. malawi has a worse structual defecient oil system but their prices are lower than zambias.
31
Deja Vu- These guys know the sufferings of majority zambians and shikapwasha knows how his people suffer in his constituency Chibomba in particuly, but he/they pretend like they dont know, just watch their self fish and greedy will also make them suffer in years to come
We all know that the truth pains but some people cannot just accept it. Kufya fye na NO. Let them adjust the fuel cost further and we will charge more for our services period. Zambia is the only on EARTH whose natural resources do not benefit its citizens. Zed is a laughing stock because it does not learn from past mistake. It is incredible that the cost of fuel in Zimbabwe, with their inflation in millions, cost less than what we are paying in Zambia. God hear us.
CAN ANY THING GOOD COME OUT FROM ZAMBIA. EVERY DAY KUTUKISHANYAFYE THERE IS NOTHING LIKE DEVELOPING THE COUNTRY MUMA KANWA YENU. THATS WHY EACH YEAR MY HUSBAND SAYS WE GO HOME NIMA DWALA BP.
KC, that is not correct. Indeni is not a real refinery in the strictest sense so we need when feedstock for the country is bought it comprises crude plus a refined product diesel and some other things. Thus shipments for Zambia are already expensive since you are not only buying crude. Then the state of the facilities at Dar dramatically increase insurance costs, in any case not many shippers like discharging at Dar given the risk of an accident. Then the state of the pipeline itself is not very good leading to losses, and then finally our very own Indeni with its own issues. The landed cost at Indeni is thus very different. Interestingly all of our neighbours do not have a refinery….
Iam amazed how they quickly respond to Mr Sata’s comments. It shows how much influence and power the man has. Keep up the incoming excellency President Sata. Most Zambiana would rather complain quitely. Sata has been our voice hate the Man or love him has stood by us and complained loudly on our behalf. If it was Ngondo or Miyanda or Nawakwi the MMD will never bother to answer quickly, it can take even a year.
Lusaka Times Gen Shikapwasha lol. But imwe guys serously isnt fuel par Zed already expensive compared to other counties in the region? When fuel slampt down did Zambia bring down the price? kaya mama!
#13 …….haha……you’ve cracked my ribs over here…….. no comment !
36 Peter cool,
You seem to be more informative on this subject. Are you saying fuel would be cheaper without indeni and tazara pipeline ?. And as you piontout other contries in the region do not have an indeni equvalent but fuel is cheaper. Blowing away the dust, you would find the issue of middle men is the maine cause of this expense. British airways cargo threatened to stop comming to zambia because jet fuel was too expensive and they did not want to pass on the expenses to the coustomers. It took the intervention of PLM to allow BA to buy directly from the source, cutting out the middlemen.
I would not be suppried if a heroic miraculas election campain effort by RB to lower prices is around the corner. take hid of my prediction
2010 @34. What we need is a new breed of leadership that will be willing to take advice from our local technocrats not the crap that we have had since independence. Why should things be more expensive here than say Zim. KK used to say that we were land locked that is why. He forgot that Switzerland is land locked but is still one of the richest countries in the world. Problem is the crap that we put in government always come with their pocket agenda. They start campaining 5 years before the next elections thus neglecting real development. Even PHD holders go to sleep when they enter government. Why should we lag behind even a country like DRC which has been at war since 1965? Why? We are dull so dull even foreigners can become president in our country.
#33 Kc thats a good one and if thats the case then preasure needs to be put on GRZ to shut down Indeni because its simply useless to us ordinary people that vote them in power
#29 DNC Gas in gaborone is K3,780 / litre (kwacha equivalent). There is no oil refinery in Botswana and yet the price is so low. Too many Gov’t taxes and levies in Zambia are the cause of the high prices you’re paying and the GRZ has no intention of losing this income.
After all, although there is an effect on almost everything, it’s mostly the motorists who are paying directly. Note that the mini-bus fares have not been increased at the same time.
#18 sum guy. A 15% increase in fuel prices does not result in a similar rise in everything else. Is fuel the only cost component of all economic activity – what about wages, rentals, power, etc?
Quite clearly middlemen are part of the cost structure. But to suggest that you can somehow miraculously do away with them is wishful thinking. The fact of the matter is that the stuff is already sold before it even comes out of the ground and belongs to someone who is unlikely ever to see it but sells it! And the cost of their fees is negligible on the per litre price of the products. Sure the price of fuel in Zambia is high, everyone knows that. Which is why Mpombo promised the country cheaper fuel from Iran but failed and also Nawakwi before that and which is why if Sata comes into power he shall also promise the same. But this efforts will fall flat on their faces if the issues that I keep on referring to remain unresolved. By the way taxes and levies on fuel are not 25 but 5!!!
My very last comment for the day. It is an anomally for the Minister of Information to make a comment on this subject.There is legally instituted body that is “independent” and determines pricing and is best placed to make any comments on the subject. In any case it was the ERB that annoiunced the increase. Comments like this one from a senior government official only help to further politicise a rather complex matter that will never be solved by verbal abuse or any attempts at a quick fix….
India and China have greatly contributed to the global demand for fuel and this affects the price at the pump. Just recently China has broken the USA 100 years stranglehold on the motor industry and has now become the largest market for the automobiles. OPEC is largely to blame for fuel price rises because they control supply of this commodity and therefore shrewdly controlling demand. We also have speculators employed by major financial players and hedge funds that are investing huge amounts into oil trade. All these players including the OPEC cartel are after a profit. OPEC has raised over US$1 trillion dollars since the beginning of the last decade when the prices were high. This is not an MMD problem, but as a country we need strategies that will safeguard us from profiteers.
#29,37,45 Peter Cool, when Indeni is functional Congo DRC procures their fuel from there. Their pump price is still lower than that obtaining in Zambia. Are you saying when this is sold to the Congolese the component of transportation is not considered? The CIF to Ndola + profit component forms the export value to congo. So then why is our fuel still more expensive than that from congo. I tend to agree with Sata on the issue of corruption in the fuel procurement. Look also in the issue of fuel Levy, it is in billions. Correct me if am wrong fuel levy is meant for road rehabilitation but who rehabilitates our roads? DONORS. I rest my case.
Iwe chi Nyau Dancer just because you are from the east and steal money with your kamwendo munjulia doesnt mean all zambians are thieves like you. continue to steal but be sure next year mwala nya sana.
No.9 Ndobo.
I have been resisting the urge to just call you what you are, a spineless lu.natic. Why do you go on and on about HH having no balls?? You must be birds of the same feathers for how else would you know that he has no balls. You disgust us, just discuss issues you *****. I pity your woman coz this is a clear indication that you a frustrated and castrated idio.t
This means that even prices of vakudya will go up. Akabunga may cost 75 g’s now. Ala tizafa njala coz basically the price of fuel runs the economy of a nation.
Dear Loose Canon(#49)
PF UPND pact can’t win an election because as a leadership they have no plan for Zambia. How does Mr Sata blame Rupiah and MMD for the price of fuel? Unless he gives us a breakdown of his figures, we can assume that he is trying to appeal to adolescent masses. The winners in this oil game are international speculators and the Zambian motorists and kerosene consumers are right at the end of the food chain. There is one golden rule in oil trade; supply of oil is rigorously controlled by suppliers and producers to ensure highest profits. Crude oil is owned by “oil Sharks” right from the wells right up to the refineries, and unless Mr Sata and his supporters can prove otherwise; they are uninformed on oil trade.
Sata must know what he’s talking about because he was THERE, one of those who stole – remember the billions from parliament that went to the MMD joke at Mulungushi? But maybe he should have said the funds will go to funding the MMD, and not PF. You’re all thieves.
” Shikapwasha explained that the increase in fuel prices has not vindicated Mr. Sata from anything because he still remains an insensitive, hypocritical and manipulative politician who can say anything to gain political mileage. ”
‘Project’ much?
”THOSE THAT WISH SO CAN BE DAMNED F00LS, WILL DO SO BY CHOICE”…………..Shikapwasha would sale his family to be in Banda’s govt. and he would not even blink an eye. Thank god he is no longer in the army, imagine a Clown like him protecting the nation while you sleep. I can bet my life on it, that to make it to General, he must have boot-licked and done something immoral or evil that would even turn the Devil’s stomach……….Mr. BootyLicker, if fuel is solely managed by the Energy Regulation Board (ERB), how did that one morning two months ago your Boss manage to stop fuel price hikes.I hope with your energy you also benefiting from this Fuel day light scandal. Hypocrites!!!!!!!!!!!!!!!!!!!!!!!!!!!
# 52 Nyau Dancer
You havent answered someone above who said Sata could be right otherwise how come zambia is the most expensive place to drive in or fly to in the region ?. Do the laws of speculation apply to zambia differently to those of other countries ?
Nyau Dancer just smoke some more chamba and wait for daddy RB to give you more sugar, otherwise sleep
#54 MrK
Top post,that statement speaks volumes,just about summerises the whole article
Around the world in general, the cost of fuel has gone up between 12 and 15%. It sad that Michael Sata will use that as an accusation against the govt. Don’t get me wrong, i want MMD out of govt as much as any sane Zambian does. But i want an elected leader that know his/her global economics.
Mr Sata, your prediction was spot on, but you didn’t and still don’t know why fuel prices were increased.
Its not only sad, its embarrassing!!
# 50
mimi this attack on me is unwaranted read my comment # 9 again, LT i hope you have seen the language used in comment#50…am not sure it will be in your best interest for me to answer answer mini mimi back.
Fellow bloggers just look mimi’s comment #50 and no one has cautioned this mimi girl or boy about his/her language…if we are to keep this blog on a ‘sane’ level which most people want, then everyone has to play by the rules, am not complaining, i can put back mimi in her/his place if i want but am born again meaning am on holiday i will not smoking
Iwe Nyau dancer, spare us your bush economics. All those factors affect even the other countries. The question still remains, why is fuel more expensive in Zambia than the rest of the region despite having the only oil refinery?Someone has even pointed out that fuel imported from indeni lands cheaper in DRC. How come?
PF cadres don’t understand basic economics on the way fuel is procured. The prices at the pump include taxes such as Vat, Customs excise and any other like road tax. These taxes obviously account for variations between countries. Are PF cadres saying prices should be the same in all the countries?
Zimbabwe government paid dearly for artificially keeping the prices of fuel low; there was a serious shortage of the commodity in Zimbabwe where even major transporters avoided the route completely. The commodity was readily available on the black market, but in Zambia it is a different scenario, we have a guaranteed availability of the commodity.
Shikapwa you should know that this hike will affect the poor Zambians more than you useless plunderers. Tell me, why is Zambian fuel so expensive in Afria? why and why?
When a man talks too much, it’s because he is unwise.
#62 Nyau Dancer, two months ago when indeni was shut an SI was produced which removed most taxes and remained with 7% excise duty only which has been the lowest ever, the price of fuel never went down, infact that SI is still in force. The benefits have never been passed to the consumers interms of reduction. So the question still remains why is fuel still expensive? Someone some where is chewing and the back falls on the countries chief executive. Gule wamukulu wewo.
zambia is luck in th sense that typically zambian to su[port or argue forsomething not right.fuel in zambia is very expenisve compared to the region.just like making a phone call in zambia is very expensive ,yet someone will come up and give all the scholarly explaination.this is the problem .you parade crude knowledge for what.what we want now is for fuel prices to be as sane as those of our neighbours.maybe need to learn how they do it.explaing to me how a cell phone is made is irrelevant,give me source of a cheaper phone ,and i will be ok.stop politics and deliver
colouring black and white zambia s challlenges to THE PACT,PF UPND and MMD is rather shallow for educated people.the challenges facing our country can not be left the politicians only.and the solutions that we need for our issues are not only going to come from the politicians.so when we discuss ,do not be quick to tell us how impossible it is .and if ur view is of no possible or better solutions challenging our country .rather keep quiet.because they are solutions -better solutions to our country issues.zambia need home grown solutions ,not donor funding and others.we are the solutions.
2 Timothy 3:1-5
“….the statement by the PF leader is untrue, highly irresponsible and provocative.”
That’s Sata for you.
Anyway, fellow Zambians, please note that Fuel prices have gone up on teh world market. Here in teh UK, the petrol prices are going up every day. It’s become so expensive now. I am sure this is the case in Europe and America. So brace your self for more price hikes. Remember, fuel prices were very high before teh global recession hit due to China and India developing so fast.
Well the recession is easing and ending in some parts of the word. That means economic growth demands more fule, resulting in higher fuel prices, just like copper prices have shot up.
Let’s be real and intellectual.