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President Sata defends removal of fuel subsidy

Headlines President Sata defends removal of fuel subsidy

File:President Sata with Vice-President Dr Guy Scott on arrival  for the  closed door meeting with Chiefs from Muchinga Province at State House on March 25,2013 -Picture by THOMAS NSAMA
File:President Sata with Vice-President Dr Guy Scott on arrival for the closed door meeting with Chiefs from Muchinga Province at State House on March 25,2013 -Picture by THOMAS NSAMA

President Michael Sata has defended his governments move to remove the fuel subsidy.He explained thats its removal would avail funds to be used in the social sector and infrastructure development.He assured Zambians that the PF government remains committed to ensuring that there is a transparent and equitable distribution of resources to all sectors to facilitate greater economic growth.

Below is the Full statement

Media Statement

For Immediate Release


LUSAKA, Thursday, May 2, 2013 – His Excellency, Mr. Michael Chilufya Sata, President of the Republic of Zambia, has said the removal of the subsidy on petroleum products will enable the state to have more finances available for spending and guarantee proper implementation of all government programmes and projects.
President Sata said it is necessary that the subsidy on petroleum products, which has been a burden on state coffers for a longtime, is removed and consequently the price of fuel adjusted upwards in order to attract wider social benefits for the general populace.

“In 2012 alone, the Treasury redirected resources amounting to KR754 Million (K754 Billion) from implementation of other government programmes and activities in the Budget to finance the fuel subsidy,” the Head of State said.

“For the 2013 budget, the Government has already paid a sum of KR571.5 Million (K571.4 Billion) in fuel subsidies as at 18th January, 2013. It is estimated that more than K1.1 Trillion (KR1.1 Billion) will be paid in 2013 as subsidies if no adjustment is made to the price build up and/or the pump price.

“Our people may wish to know that the estimated K1.1 Trillion (KR1.1 Billion) subsidy can go a long way in financing the construction of more than 100 new rural primary schools or over 120 new rural health centres to help the majority marginalized Zambians.”

The President has further explained that these funds are diverted from expenditure on social sectors and infrastructure development that if spent would have accelerated poverty reduction and employment creation especially for the youths.

“The removal of the subsidy will make more finances available for spending and guarantee job creation and the development of infrastructure such as schools, universities, hospitals as well as the Link Zambia 8000 project, which will open up the rural areas for increased trade and investment,” President Sata said.

“The decision will also make funds available for the upgrading of the Indeni Oil Refinery to enable it process pure crude oil, which is cheaper to import and will result in cheaper imports by about US$10 Million while providing other by-products to be used in the plastic, road and fertilizer industries. I believe the overall short and long-term benefits to Zambians of this action, outweighs by far any perceived negative consequences.”

President Sata said in its pursuit to improve the livelihood of all Zambians, the PF government remains committed to ensuring that there is a transparent and equitable distribution of resources to all sectors to facilitate greater economic growth.

Meanwhile, President Sata is this Friday [tomorrow] expected to flag off the commencement of the construction of the 61Km Chalimbana Road project. This is another project under the Link Zambia 8000, which will provide a shorter route to the Leopards Hill Road passing through Chiawa to Chirundu.

The same day, the Head of State is also expected to lay a foundation stone for the construction of Chalimbana University. This is part of President Sata’s vision to overhaul and develop the education system by increasing the number of public universities as espoused in the PF manifesto.

Issued by:


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    • I want to hear someone comment on the woman I found in North Western Province soaking cassava for mealie meal. How does she benefit from perpetual mealie meal subsidies? How does she benefit from fuel subsidies when the truth is she does not go anywhere?

      I am still in emp[loyment but the last ten plus years I have never bought mealie meal or beans.

      Please wake up you Zambians. Good things are not cheap

  1. Dysfunctional government at work LOL. I cant Understand why the President wont hold a press conference or atleast address the nation on these important matters. Ubushe do they have advisers mu state house. These matters are very important. Elo there was no need to issue a second statement on fuel subsidies this could have been done yesterday. Talk about managing a crisis yaba

    • We don’t want these garbage statements on important national issues all the time. we want Sata to address the nation than hide behind issuing garbage to defend the indefensible.

      Stop this jibber-jabber and bravely face then nation or quit

    • #Lusaka boy, bukopo nagu ninshi. HE is busy trying to fix the problem and you want him to come and sit under a tree with monkeys above him to tell the same info in the press release.

  2. We want to see you on Tv Sir at a press conference.This kid Chella should not be telling us of important matters.You will inspire more confidence and strength if people see you.

  3. the removal of the subsidies is welcome. what is not welcome is the wrong use of these funds. Please use these funds wisely otherwise you will go running nga Tona or cry like RB did. The people have trusted you with your actions and make sure you payback. Time is ticking

  4. Its all good, lets sucrifice now vakwetu rather than later. In Mwanawasa’s time we managed to stay put on the HIPC issue we will get over this and learn to live with it.

  5. This press statement was written on May 2nd why release it on May 16 or is it because Chellah didn’t proof read it before releasing it?

  6. Asryt !!! One needs to be at a certain intellectual level to understand these changes.It is just a pity that an average Zambian can`t understand the rationally behind this because they have to think in Nshima and fuel lines.Sorry ba King cobra i`m afraid your message won`t reach the intended target.


    Kenneth Thefavoured II
    We shall rule the Nation by the following 10 Commandments.

    1: we shall hike fuel charges
    2: hike electricity charges
    3: no permanent jobs for the youth
    4: hike melie meal prices
    5: hold bye-elections every month and more ministers
    6: no rallies by opposition
    7: we shall arrest any opposition leader for any or no reason
    8: less fertilizer for farmers
    9: More road accidents

  8. Your Excellency Sir,On behalf of the suffering masses who have continued to sacrifice upon sacrifice from UNIP belt tightening ,MMD -SAP,then HIPC,How about you now doing the sacrifice?We demand the following;
    1.Reduce the size of your cabinet and remove all senseless allowances like fuel,entertainment,water electricity etc,thus the wage bill will be greatly be reduced.This must include all your permanent secretaries and directors.
    2.Stop all unnecessary self induced bye elections.They are a waste of public resources which could been well spent on youth employment creation and cushioning the vulnerable in the society from economic hardships.The best option if you want the majority in Parliament is to dissolve parliament then hold fresh parliamentary elections.
    Thank you .

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