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Wednesday, July 8, 2020

HH calls for reduction in Fuel Price to K4 per litre after decline in world oil price

Headlines HH calls for reduction in Fuel Price to K4 per litre after...

UPND leader Hakainde Hichilema
UPND leader Hakainde Hichilema

United Party for National Development UPND President Hakainde HIchilema has called for a reduction in the price of fuel. In a statement released to the media, the UPND leader said that when PF took over in 2011, crude oil was over US$120 per barrel and now that the price is $36 per barrel, it therefore made sense to reduce the price of fuel to about K4 per litre

Below is the full statement

We have repeatedly been urging our colleagues in the PF Government to take advantage of the sharp fall in world oil prices by reducing the fuel pump prices.

When PF took over in 2011, crude oil was over US$120 per barrel yet at that time, they even reduced fuel to the current prices. It therefore makes sense that at the current world prices of around US $36 per barrel representing a quarter of what they used to be, it therefore goes without saying that fuel must now be around 4 kwacha a liter in Zambia.

But knowing their corrupt ways and that they are broke and have messed up the country, we will not be surprised to hear an increase instead of reduction in fuel prices.

In a troubled economic situation like ours a reduction in fuel prices will act as a stimulus for economic activities in several sectors and could help save jobs and businesses, especially with the ongoing and extensive electricity loadshedding in the country.

A reduction in fuel prices will also help in reducing the cost of doing business and will assist in reducing the current high cost of living in the country.

This being a farming season, any reduction will also help our farmers in using their mechanised farming equipment and boost agriculture production which we want to be the key driver under our economic diversification programme.

Already the PF Government has hiked electricity tariffs by 300% in some cases. This has made the tariffs very high unmanageable levels despite the massive electricity loadshedding.

Many businesses are now surviving on fuel propelled generators and the fuel reduction would offer them much needed relief. Our colleagues in the PF are always quick at blaming economic issues on global trends and we now urge them to take advantage of the falling fuel prices on the global market.

Many countries in the world, and even in the region, have been reducing fuel prices for their citizens as a measure to trigger economic growth and reduce the cost of living.

Hakainde Hichilema
UPND President

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    • @Pochogo, that’s a fun word styopeti. HH is too desperate for office this is why the other day he was praising the Jerabo. How can fuel be reduced to k4. Yes the crude oil is at $36 to a barrel, but he mentioned that when PF took office the oil was at $120. But he has forgotten that the exchange rate was not at k11 to a dollar, this is the same man who believe to know better than everybody. There is no way fuel in Zambia can be cheaper than USA,UK, Australia and the rest, because the k4 per litre he is talking about will make fuel in Zambia cheaper than anywhere in the world. Is fuel being rigged in Zambia for it yo have that price? Hell no, so what about the cost in transporting the same oil into Zambia. No logic in his statement. Just desperate to get to plot one. I’m not for Lungu…

    • If id10ts make a mistake to elect Lungu again and PF again, they should prepare to go begging in other countries because Zambia will be worse than Zimbabwe under PF post 2016 elections.

      Slowly UPND are loosing patience and will start taking matters into their own hands if Lungu continues to ban them from mobilising their members in preparation for the 2016 elections.

      Viva UPND , Viva HH and his team.

    • And IMF is telling us to remove fuel subsidies… and PF says they are subsidising because they need to win the elections… and HH says theres no subsidies, only mega profits. Who speaks the truth these days??? Eish!

  1. stop being reactive we need to do the necesary calculations in order for us to come up with the right price,since your informers have told you that the gvt is about to reduce the price somewhere around that figure you tend come out as a champion just shut,and your louse followers will say he is working or he has told the gvt to reduce fuel,styopeti village champion

    • @Pochogo, you really breaking my bones from laughing at the word you keep using styopeti. Lol what does that mean. I looked up in every dictionary I couldn’t find it you are so fun. Ati Styopeti. Tell them these HH blind followers. You know HH blind followers are like those people following that Pastor telling them to drink petrol and eat grass and all sorts of things, everybody understand the exchange rate in Zambia now, if you do your math, the price can’t get to k4 no matter what type of a calculator you use. Scientific or standard calculator still you will not get to k4. The dollar is too strong to bring that price down imwe bankusa. Ati Styopeti.

    • Zambiano, is the Dollar strong or is the Kwacha weak? The Dollar is still worth 1.5 Pounds! And 1,000,000,000,000,000,000,000,000,000,000,000 Zimbabwe Dollars might be able to buy you a few US cents!

      I think it is dull and greedy politicians in Government that have caused the collapse of the Kwacha. And now they are trying to hide their incompetence and “styopeti” by making Zambian pay more than they should for fuel.

      We should just stop Government from interfering in the fuel market, then we would pay exactly what it costs. Now, this is just opening the door for corrupt oil deals and stealing.

  2. As usual, HH wants to show he cares about Zambians. I wonder why he never showed the same concern for Zambians when he was benefitting himself from the privatization of state parastatals in the 90s. It is always about gaining political mileage knowing how fast his political fortunes are diminishing with his political gaffes on Anglo-American and job cuts, constitutional amendments etc.

    • Ba Mule – He need not be president or head of privatization, he only needs to be unethical in his dealings as to be on the board of a company that he helped privatize.

    • Get over it. That is a long time ago. Besides, foreigners have become much richer off our resources. All you do is attack fellow Zambians who had the brains to equally benefit! At least his money is still being spent in Zambia.


  4. Well, at least the government should offer an explanation as to why fuel prices are not being reduced IN ZAMBIA. When oil prices increase, it doesn’t take second thinking to react. And of course lower fuel prices do trigger economic activity and survival for some. I do not understand why people still choose to brush the issue aside. It needs debate and an answer.

    • Harold Muna, THIS IS A NO BRAINER, IT DOESN’T NEED ANY DISCUSSION, infact the other day, my dogs were barking mad, as the usual Traffic noise had died down, I can only surmise, they had sensed world fuel prices were plunging, thus in unison they were calling for a price reduction!!

    • @Mutale Zambia, please don’t follow blindly. Even a retarded person will figure this one why fuel is high. K4 is $0.36, so he is saying fuel should cost $0.36 per liter. In the USA fuel is $0.48 per liter and that is equal to $1.82 per gallon. Because here they sale in Gallons. 1 Gallon is 3.785 liters. So if the USA is selling fuel for $0.48 per liter, how possible is it that in Zambia it should be $0.36? Ba HH with your economics, unless you say you are going to subsidize since you are in the billionaire boys club. Don’t get me wrong, I always like to finish saying I’m not supporting Edgar either. You can go on and say negative about my comment but at least I have the facts, HH calculation is fake only a fool will praise that kind of analysis. It’s so sad for our country that the PF…

  5. This ichilema man is a joker. Ukulanda kwalyanguka ukucila ukubomba yes fuel prices hv reduced on intl market but not k4 ,say the truth & it shall set u free.anyway he has run out of ideas bcoz anglo issue is gone in waters

    • And what are your points to counter HH’s points he has raised on the subject at hand? Nothing? Is this the best you can do?

    • Chuundu. And HH is not telling the truth. RSA increased the cost per litre of fuel. Which region is he talking about? He has been told that the GRZ will be reducing fuel. Remember at the time the Civil Servants were about to be paid, he rushed to the media and “directed” GRZ to pay CS immediately. Time will tell just.

  6. Is this being a cadre? Why this filthy language please??? The issue is clear, world prices are reduced and so it must trickle down to an average citizen. Let the govt do it as quick as they take to hike prices when global prices go up. Lets stop being cadres (especially if it means just insulting) and focus on development.

    • @ Development expert, what are you expert for? $37 per barrel that’s the latest price on crude oil. You do you maths and see if you will come to k4 per liter. That k4 per liter is talking about makes fuel in Zambia cheaper than anywhere in the world and yet Zambia does not produce oil it imports, so how can it be cheaper than anywhere else. Blind follower. Please change your blog name it’s embarrassing to say Development expert yet you know jack. Iwe munyela kulukungu ati Styopeti like Pochogo is saying it.

  7. This is a very rational and logical comment from HH – UPND. If anything, PF Govt should have by now seized the falling prices of crude oil globally and reduce fuel pump prices to prove their assertion that events caused by global trends are beyond their control. The fact that they have done nothing in reducing fuel pump prices is proof that they are lying to Zambians. Plain and simple.

    • And what are your points to counter HH’s points he has raised on the subject at hand? Nothing? Is this the best you can do?

    • So you are very happy with Lungu and his PF Government overcharging the Zambian people for fuel?

      So that he can waste $300,000 chartering a plane to go joyriding with his friends?

      What kind of brainless thinking is that? Do you really enjoy when you are poor?

  8. Think about this; oil prices have tumbled over time,what about the ZMK ,how much was per Dollar? How much is it now? Ba HHHHH think properly?

    • @Isa, that’s what I’m telling them, ati k4 per liter BA HH where is that analysis coming from. And his blind followers are busy supporting. Just like he was praising the Jerabo guys the other day, awe chashupa mwe. I thought this HH was better than Edgar, they are both the same, twafwa.

  9. for how how long has it been like that ?this not a kantemba where you just wake up and say toba umutwe nalabwesha pali 50 ngwe there so many factors involved so please ukubwatabwata wont take you anywhere,i think Garry Nkombo is better than HH

    • @Pochogo, toba umutwe. You are something, what part of Zambia did you grow up from. I think you and I come from the same area because your language reminds me of those days when I was growing up in the Copperbelt. You are the man of the show on this blog. Thumbs up from me. Tell them ati Styopeti.

  10. How can the PF thieves reduce when they are fundrising for elections.They are taking advantage of ignorant zamians.thives are thieves since its global reduce also.

  11. Mr Shakafusa further told the newspaper that being in opposition did not mean that he should create enemies with those in power and criticize them unreasonably. i respect this man coz he is been reasonable and i think he knows the procedures in evrything that happens in parliament not ba Half Halenya apali ponse kubosa ataa

  12. in UPND theres no spokesperson or any other person allowed to issue statements??? what happened to cornelius mweetwa? its always this man issuing statements IN HIS name for that matter not the PARTY…smh

    • And what are your points to counter HH’s points he has raised on the subject at hand? Nothing? Is this the best you can do?

    • HH is a dictator and I really pity those under his armpit. He is a Mr know it all and I wonder what goes on in his home.

  13. Somebody has to stand up and say something for this Current govt to react, they don’t waste time to increase the fuel pump prices when crude oil increases on international market, I don’t see why time has to be wasted when it comes to reducing. we want to benefit from this as well, twachula Pafula.

  14. Has HH reduced prices of items he increased when dolar was at K14.50? If what HH has said is true govt should do it even by K3. Thankyou HH tho I cant vote for you


    • And when is the oil price going to $ 79???

      GLOBAL PRICE will stay below 40 until after 2018 so what are these Poor Fools waiting for?

      Same as the load shedding, these clowns will only wake up a few years later!

  16. Well spoken HH. It very clear from the opposing comments on this blog that NONE OF THEM are answering HH point-for-point without contradicting themselves. This speaks volumes. Well done HH.

  17. Imwe ba HH
    1. how much was the kwacha when mmd was leaving office in 2011?
    2. What did the president say about fuel subsidies during the only PF press conference?
    3. Are you really an economic manager as you claim to be or you need an economic adviser?
    4. Even if fuel prices came down, they would not sharply come down to K4, where in the world could this happen? not even in the imaginary world (where you belong anyway) could this happen.

    • The exchange rate was 6 Kwacha per dollar. Today it is 11. Meaning that the price in Kwacha terms per barrel was K720. At 11 Kwacha, the current price of 36 to 40 dollars per barrel, is K396 to K440. Therefore, HH is on strong ground to demand a reduction. If you take K440, the price has fallen by K280 per barrel, representing a fall of 40%. 40% less of 8.59, gives a market price of around K5 per litre. If you use $36 per barrel, you get 5, hence HH’s call.

  18. A barrel of crude oil is at all low on the global…yes its global…if the gov’t was honest and came out said we are using the funds to A and B debts people would not ask questions BUT its clear they are creaming off the profits and using them for unsustainable measures like salaries and excessive expenditure. How can a President be giving out soft loans to marketeers with yours money?

  19. What Economics did this man study? Yes the price of crude oil in international markets has fallen. HH should realize that the Kwacha has depreciated by over 70%. We don’t pay for oil in Kwacha but in US dollars. Given the significant depreciation in the Kwacha, we now need to convert more Kwacha into dollars to pay for oil.

  20. This is the best time to stock pile fuel by our GRZ.But alas,they will counter this statement from HH with some tribal trirade..My father always told me “Make hay while the sun shines”.I dont if fat albert can encourage his friend to buy more fuel and stock pile in the reserves.

  21. Mr Hapona Hapona (HH) Is Yo Observtion Normal Not Even In Nigeria, Angola,is Fuel That Cheap.U Are Talking Of 1/2 A Dollar Per Litre. It Wud Be Better U Give Us A Break Of All The Costs Involved To Come up With The K4/l Without That Its Just Like Those Useless Hate Attacks Of Yos On Govt. Besides Reducing Fuel In Zed Doent Make Sense Pipo Refuse To Reduce Prices Including Producers. U Just Want To Raise Yo Profit In Yo Companies In Readness For Elections. Hh Ni Chi nsuka Mulamu Pakuti Chikalile Katwishi Kano Ka Automatic Ka Lungu One Kick Ka Winner Nakabili One Kick Ka Ka Wine Shame To U HH

  22. A little education for all of you commenting on the story above. The price of crude is only a third of the total cost of fuel at the filling station. Here at Exxon Mobil refineries increase what is charged for refining oil when crude oil prices are low and somewhere try and maintain the prices.


  24. Fuel economics is a complex practical subject that is beyond the understanding of the so called economic manager who behaves as if he has not yet graduated from university. And yet his lack of the practical touch and a large amount of ignorance is taken for intelligence in some quarters especially the UPMD circles whose only understanding of economics is through HH and everybody else is ignorant. We know that HH’s political breathing space has suddenly diminished in the last few days with events like 50%+1, running mate, and the sad story of his favourite pet, Anglo American.

  25. All right thinking Zambians have a duty to coach the underfive on practical economics, otherwise he will continue to present photocopies from economics books as his own intelligence. Tell underfive to use the below as a reference guide.
    1. For each consignment of crude oil, the Energy Regulations Board assesses the cost of fuel at the pump.
    2. If there are are still some subsidies these will be factored in.
    3. Since the price is done per consignment, there is a lag in pricing which is not in proportion to the world price.
    4. It will be more productive for underfive HH to wait for the next consignment to see what will happen to the pump price of fuel in Zambia.

    • @Terrible by now the price should have been reduced! The poor guy (HH) is only say some fundamentals which would apply in most countries. In Zambia despite the massive borrowing, one would have expected the economy to have taken off! But we are going nowhere. Even if HH comes in, it will be like we are starting from zero! PF don’t make their governance to be inclusive, that’s why we have a complete breakdown in the institutions of democracy!

  26. 5. Zambia does not procure its oil on the “world market” but through dealers. (Underfive probably thinks of “world market” in terms of Soweto market in Lusaka). The reasons are that Zambia is a small buyer and also the world oil market has historically been run by cartels. For these reasons, the pump price of fuel in Zambia will not drop in the same proportion as world oil prices.
    6. Even in UK, USA or RSA pump prices have not dropped in proportion to world prices
    7. There are some commodities which are a major component of government revenue. Fuel is one such, if the price reduces to zero and the taxes reduce to zero what will the government pay civil servants including UPMD? The UK especially is a good example of this, perhaps USA not to the same extent.
    8. HH has not factored…

  27. 8. HH has not factored in the cost of transporting the oil and producing fuel from the Indeni plant, and ageing plant conditions and maintenance costs.
    9. Let them not forget the added factor of the kwacha rate of exchange.
    Due to lack of space we end here but he should continue revising his economics.

  28. So you see, tell underfive that there are certain things for which patriotic Zambians must continue paying for, otherwise the burden will be passed on to the very vulnerable in our society. With HH’s kind of reasoning, where would be the vulnerable be left? Thank God, the political landscaped has changed so drastically in the last few day that the small chances he had have disappeared suddenly. But expect more from UPMD as we approach elections, including the stories of rigging which he has already started.

  29. News reports indicate that there were qeues at filling stations to day in Lusaka, we should expect a picture of HH imitating Sata with a ka 5 liter container….kikikiki

  30. HH has probably heard from his informers that ERB is working on new prices and as usual wants to position himself as intelligent, that is why his followers call him economic manager, for things that if they cared to read, they would not call him economic manager.

  31. Is this the way this man runs his business without thourouly studying the parameters at play? Why is this HH not mentioning that the price of copper which generates our largest foreign exchange is still very low.
    What will be the impact on the treasury to drastically reduce the pump price at K4 when the dollar which we use to buy this same oil is still artificially at K11?
    HH is seriously a danger to our society.

  32. All things being equal, kwacha has devalued from K6.4 to K12 i.e., 50% loss. Crude has reduced by75%. So before factoring in depreciation of kwacha, fuel should be at K10/4=K2.5. Factoring in depreciated kwacha at 50% gives us K5.0. This is a rough and simple calculation and remember there are govt taxes in the final price which are a high percentage. The point by HH is still valid; the raw material is now cheap, so should the product. We are being exploited by govt!

  33. Bane thats why you are failures in your lives!! TOO THEORETICAL. There are other factors that come into play before any prices are adjusted. How can we expect fuel to be cheaper in Zambia than countries like SA today? You are nuts!!!

  34. Somehow I think HH’s riches are real because of his ability to simplify issues than the so called ‘PAUL Choongo and Terrible’ minions. HH has just given us two figures to compare from and these two minions want us not believe. Zambia is a democratic state and Opposition parties will ever be there to offer balances and checks. HH has just done that. These minions’ submissions are so strong that one would think they are in Govt or they are part of the Cartel benefiting through ERB dealings – then why not just make a logical explaination why you have not reduced the pump price e.g. the kwacha’s loss of value, why poor economic management. When BOZ increases interest rates banks immediately respond to negatively affect general membership. HH has the point.

  35. My Fellow Zambians who are endowed with substance in your heads, kindly read some of the comments above and see for yourselves how many empty tins are there in the PF Camp and their degree of reasoning. Clearly, you can see for yourselves that we are at trouble with these empty buckets because they don’ t look at issues raised but just jump into blaming everything that come from an opposing mind. Look at what is happening on the Copperbelt right now. The whole President is busy dishing out money, buying people by just filling in a form in the name of Presidential Initiative fund and the people can’ t even realize that they are being hoodwinked and fooled ? Kwena, no wonder this country can’ t develop ‘cos there are quite a majority of Zambians who think like chickens. Just imagine…

  36. Those of you who get paid by ranting and barking you must too begin to be useful and not useful-*****s. UFO’s thinking is logical and profession because he says the kwacha is now at K11 per dollar meaning K4 is below a 50cents thereby it goes by explaining that our K10 is actually 90cents; that our currency was stronger in 2011 than now. The economy is indeed very poor. We must admit!!

  37. Thank you for telling these monkeys Mr. President HH. Does Lungu and his Bemba Fools know a thing? Simple things like adjusting fuel pumps they must be told, incredible Pathetic Fools.

  38. HH you are not talking any meaningful sense.Relax……11 August 2016 is coming.Hold your breath.What is your comment on the constitution 50+1 and your running mate?Your so -called vice president has got milling plants and you ,yourself you have a lot of animals which you supply to various companies.Why can’t both of you reduce the price of mealie meal and beef?You were busy in UK doing a DE-service to your Country by saying Zambia is not a good place for investors.What do you want KANSHI musankwa ?Amutwambile makani!
    You are a disgrace try to reform and apologize it is not to late.

  39. Here are the facts:

    1. the new price per barrel of crude oil is now $36
    2. I barrel = 159 liters,say 160
    3.normal loss in prcessing about 10% ,say 16 litres/barrel
    4. in zambian 1 barrell = 36 x 11= k396
    5. 1 litre crude oil =396/144=2.75,say K3
    4.ship crude oil/litre to dar-es-salam,say k1.5,cumulatice cost =3+1.5=4.5
    5. pipe oil to indeni from dar = say k0.5 cumulative = 4.5+0.5=5
    6. process it at indeni = say K1/litre,cumulative 1+5=6
    7. overheads =say k1/litre,cumulative 1+6=7
    8. return on investment= say 0.5/liter,cumulative7+0.5=7.5

    so from the above I do not see how someone can propose a price of K4 unless the intention is to subsidise the cost of the commodity or to run at a loss!!!

    • Tata the issue is at reduction. Your own figures are @K7 with all the cadre-sh calculations. K4 is proposal and is mid way to K10. Meantime you understood what PF said on giving you a constitution within 90days! I hope you are not a type of nincopoops whom when someone is pointing at the moon you, your eyes just end at his finger. Be smart. It seems you too understand the fact that there is need to reduce the pump price but because it comes from HH you even wish K7 was K14 just to pin him down. Things were OK during LPM because Sata talked even did demonstrate but this time it seems you prefer to be paid to shot opponents like HH and silence them completely. This is nonsensical.

  40. Zambia is a very interesting place. When prices are increased, it is because oil prices have gone up. When that is not the case, it is the exchange rate eroding chances of a decrease but fueling an increase. If that is not the case, it is loadshedding and the cost of production and transporting of fuel into the country. Everything is premised on one liability after another EXCEPT it is never an internal one!!!! Interesting.

  41. I think HH is right on this one guys, why should fuel be cheaper in countries like DRC,ZIM nd RSA? My word to you mr president (HH), is that fuel is critical to any country’s economical growth, JST promise US who drive that once voted IN, fuel kwasilila ni K4/l, then you have 90% of the votes Of those who drive. Fuel price is really a pain in the as*.

  42. Hh is a gambler and not a businessman. He thrives in buying shares. I dare any one to tell me which company Hh started from scratch and is successful. GBM is a businessman he started GBM milling and arizona transport. While Hh just buys shares in already established companies.Thats why i call him a gambler.

    • This reasoning is crude and illogical logic. It is clear you are interested to bark just a puppy registering its presence in case there is some food,it wont be forgotten. Who is the owner of Katuya Investments? Who owns Harmony, Naminwe, kalola etc ranches? What do you understand by hiding one’s face in the corporate image? Who should not do? HH is genious because this time he would have been finished like they did with late BY.

  43. No matter how deep you insult, if God wants HH to rule this country, it will surely come to pass and vice versa. Time is change, change is time, and time-change is life whose source is God almighty.

  44. @Nathaniel if God wants hh, which God !
    hh is a Freemasonry…. its a non starter !
    next year its haleya halenya, haleya halenya.
    Full stop

  45. Price of fuel in Canada is $0.87 – $1.10 (ZK6.84 -8.65). Canada is an oil producing country and they are selling some of the cheapest oil in the world at the moment. HH’s voodoo economics. Just saying. Us facts.

  46. Comment: who has messed up the exchange rate? for HH to be blamed for having not considered the exchange rate. .as usual were you not supporting it’s depreciation ? so urgue logically. This country is for all Zambians regardless of one’s tribe. Almighty God, give us forsight as a people before we perish!

  47. RE: OPEN LATTER TO UPND, NEZ, BANTUSTAN A SECRET SOCIETY GROUP & SATANIST ZWD. Imwe bafa na!!!! I used to get iritated each time UPND Chaps post any nonsical comments on important topics but now i have accepted your madness and stupidity mr NEZ and your under 5 UPND, note that HH will never rule zambia as long as he remains a satanist or unless your under five becomes born again.Secondly you should thank the editors of this site for respecting your foolish opinion on every topic. Imagine if it was myself or other well meaning Zambians critising or insulting your under five presedent HH on ZWD or Zambia eye a wholly owned subsidary of Zambian Watch dog or the Metro can they publish my opinion? No they cant as long my views are contraly to those of the tonga chaps, HH, and Matani. Lastly…

  48. @us president never call yo fellow debaters monkeys if u know u cant convince others tools down. Yo hh has been shooting himself (1) first hard short anglo made him dizzy,garry cut rabbish,jack collapsed (2) jarabo hh dizz , garry urinates and dose off in parliament chakolwa real (3) sp voters register found babies enrollowed as voters hh dizzy now doing chimpante mpante fuel k4 , pipo see nosense in it. next he will say he will give all voters a cow if he wins very dull apashile iyalikegi pa unza

  49. Call HH anything but he is not suffering like u! You are used to suffering and you think that is normal! Someone with a proven track record in business is trying to pump some sense into yo thick heads and you are saying no, he is Tonga and we can’t like him! The issue is not about how much fuel is suppose to cost, but the fact is fuel is too expensive in Zambia and there is need for a reduction! Think like mature people! u cannot eat the bemba tribe on yo table! U know yo Edgar cannot match HH in terms of everything but u hate him (HH) out jealousy and coz of his tribe! U try to run away from real issues and bring the tribal tug.

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