GOVERNMENT is working on short and long term interventions that will effectively lower fuel pump prices, Mines, Energy and Water Development minister, Christopher Yaluma has said.
Mr Yaluma said there were several factors that contributed to the increases in the pricing structure of petroleum products among them the strengthening of the dollar against the kwacha and transaction fees paid to middlemen in the procurement of petroleum feedstock.
“However, a multi-fold approach of initiatives is being undertaken by the central bank through forex injections and construction of strategic storage facilities. So when all interventions are applied, the price of fuel will certainly stabilize,” he said.
Another avenue being pursued by Government to eliminate ‘unwanted’ middlemen was to sign agreements at Government to Government level.
He said it was also important to appreciate that the petroleum industry was a well controlled sector that had the ability to dictate the direction of an economy.
Strategic storage facilities would be constructed in all provincial centres and other strategically located towns like Mpika and Kapiri Mposhi.
Mr Yaluma said in an interview in Kasama that the Mpika storage depot was actually complete and awaiting commissioning.
“We need to get these facilities across the country to reduce transportation costs,” he said.
On the long term interventions, the minister said indicators showed there was more than a 60 per cent chance that the five firms awarded nine licences between them to prospect for oil would yield positive results.
On the Ndola-based Indeni Oil Refinery, Mr Yaluma said the facility had exhausted its life cycle.
He said the refinery as an asset had exhausted its usefulness and had been kept running for purposes of maintenance.
He said the building of new refinery is however, largely dependent on the result the firms prospecting for oil will produce.
“By next year we should have results because of the improved technology being used,” he added.
It’s another lie from this 1diot! Prices never stabilise or reduce in Zambia. He knows that but he chooses to lie. You will need more exports than imports to earn more foreign exchange to use to import petroleum into the country before you think of craping about lower fuel pump prices.
Mr Yaluma does not believe himself that what he saying is true, yet he expects zambians to believe him,,,, the kwacha is falling every day against the dollar,,, and you import fuel in dollars,,, you removed the subdies,,, How mr yaluma?
Not interested in your yapping. Just do it.
The proposed measures for fuel reduction do not hold any water. I am sensing that Yaluma and his colleagues are contemplating bringing back the fuel subsidy, and are just shy to say it in plain language.
Fuel is TAXED at 80% of the price. If this IDlOT really wanted to reduce the cost of fuel he could do it TODAY!
Just reduce the TAX!
Which part of this do these PF CL0WNS not understand?
It is really hard to trust and believe a PF minister’s statement on any economy-related issue.
No doubt within 90 days blah, blah, blah.
Its all smoke and mirrors to fool the voter.The economic factors are not in you favour ba f00lish PF- the shipping costs,GRZ taxes and the int’l price of oil.Find another lie.
Bad policies hurting our economy and these quick fix only worsen the situation , everyone can see that’s a desperate move and not a well intended solution. You removed subsidies see what’s happening now and you have completely run out of ideas
Really laughable one Kabimba was appointed to head a commission of inquiry into the high prices only for he to end up forming his company and become a middle man.
Now we have this empty tin plying us with more lies!!
REALLY, ONE WONDERS WHY ZAMBIA SHOULD BE BUYING CRUDE OIL FROM THE FAR EAST AND NOT JUST PALUKUNGU (FROM ZAMBIA’S CORRIDOR IN ANGOLA) AP ANGOLA. WHEN YOU THINK ABOUT MOST AFRICAN DECISION MAKERS- THEY ARE JUST A BUNCH OF 1DIOTS. BECAUSE A PIPILINE FROM ANGOLA TO NORTH WESTERN PROVINCE WOULD INITIALLY COST SOMETHING. BUT, THE COST OF FUELS CAN BE BROUGHT DOWN SO MANY FOLDS. THINK OF THE BY-PRODUCTS, TOO. TAR, PLASTIC PIPES FOR UNDERGROUND SYSTEMS SUCH AS WATER, PLASTICS, BUS AND TRAIN SEATS, MEDICINES. THEY ARE SO NUMEROUS TO LIST DOWN. ZAMBIAN LEADERS, PLEASE, WAKE UP. HOW THICK AND SLOW CAN YOU BE AND FOR HOW LONG?
Indeni cannot refine crude from Angola that’s why.
Was that not one of your id!otic party’s campaign promises iwe? Now you are seeing ati mulifipuba ba PF who love to lie te? One thing is obvious, PF must have assessed that they would not earn as much kickbacks if they opted to import from Angola. In short, they would not be able to steal as much.
@peter
I am gobsmacked to read your blog in full attack of a PF useless minister. Has PF sacked you from your job for you to finally label them stupid as many of us have been calling them?
For the first time you are factual about the PF minions fond of yapping BUFI every second.
If people like you start realising how stupid the PF leaders are, then PFs future in government is grimy.
Well, given the importance of oil to any economy, any forward thinking Zambian should have guessed that creating an Angolan compatible refinery would benefit all in the long run.
Even something as simple as having trucks go to Angola and back makes sense. But us Zambians are allergic to sense. Better we suffer like this with gas at 10 kwacha and the dollar at 6.5.
#OneZambia
Mr Yamba there is no relationship between price stabilization and price reduction. The strategies you are mention here are far from being factors which can reduce the pump price of fuel.
You know what needs to be done, right? It is the corruption which a number of govt officials are involved in which rises the price of fuel in this country. Currently we are paying significantly higher than the international index price of finished product, yet that is the price we pay for unprocessed product.
Another issue do apologize to your poor supporters for the lies your told them the fuel subsidies benefit the rich and not the poor. At the moment is is the poor who are hard hit. Please change ba bufi people!
Is it too difficult to put up a refinery that can refine Angola crude? Political will and vision lacking!
Put the refinery in Solwezi
Mr. Minister sir, one does not have to be a rocket scientist to know the reasons for high fuel prices in Zambia.
1. Unnecessary ‘parasitic’ involvement of Indeni Refinery. Processed fuel landed cost is much cheaper than bringing in crude oil and processing it at Indeni Refinery.
2. Government involvement in import of fuel. Import of fuel by licensed dealers via Tanzania, South Africa, Angola and Mozambique will work out much cheaper and efficient. Processed oil from South Africa to Southern province, Tanzania to Northern, Luapula and Muchinga provinces, Mozambique to Eastern Province, Angola to Western and North Western provinces, will ensure the growth of efficient private sector driven petroleum distribution industry and lowering of prices across the country.
3. Presently,…
Good points ,unfortunately these old politicians like the young generation for a tail and tool for them ,any sensible suggestions to them is rubbished,most of the pf youths are just charlottes
Good suggestion.Appoint dealers in these segments. Never heard of such a wonderful idea.
USD is @ K 6.6 and ministers are just yapping. minister of finance and bank governor needs to be re-based. Where are we going?
Kays ,you are right all cabinet ministers maust be re-based.No idea on how to run the economy,pa bwato full of holes
am telling you Zambia will be worse than Zimbambwe
Kays, no it won’t go the Zimbabwe situation because we don’t have a Mugabe and we will kick out these nincompoops arses out og government before we are anywhere near god-forsaken Zimbabwe of Mugabe.
Here is how the price of fuel will come down: It will increase a little bit more to say K15 per litre; then it will reduced to K11 per litre. In other words, the reduction will not be anywhere near what you can actually call it that! That is how short this story will get. Watch this space.
hope that is a truth!
There is no such thing as Government to Government oil deal. Yaluma is dreaming. Just as the Zambian copper is sold through the London stock exchange , oil is also sold through established international markets. The people involved in those transactions are not simple opportunits or ‘ middle men ‘ as Yaluma wants to call me.
Just as the Zambian gvt does not sell copper almost all oil producing countries do not directly sell oil. The sooner Yaluma wakes up to this reality , the better for this country. PF has spent the last 3 years chasing shadows over the price of oil. They thought it was a simple issue which could be solved using their emotions. Unfortunately some issue do not respond to emotions.
You rock, educate them please for free.