OFFICIAL STATEMENT
REDUCE FUEL NOW TO STIMULATE ECONOMIC GROWTH
Our position has always been and still is that fuel at the pump in Zambia is too expensive. The PF Government has no alternative but to reduce the price of petrol and diesel. The song of the devaluation of the Kwacha being the reason to maintain high fuel prices is a tired one. The currencies in South Africa and Botswana have also devalued but fuel at the pump has been reduced to reflect the reduction of oil prices on the international market.
Fundamentally the PF have little knowledge on managing a modern economy. Commodity pricing on the international market is cyclic. In times of low oil prices the PF Government would have invested in increasing refinery and storage infrastructure. The INDENI refinery is too old, crumbling, almost obsolete and in dire need of modernisation. The cost of inefficiency at INDENI is unfortunately being transferred to motorists and industry who should have been beneficiaries of the current low oil prices.
The cost is also as a result of an opaque procurement system that serves Government and not the people.
Cutting down the cost of fuel will stimulate an ailing economy that is already being battered by a serious power deficit. A lot of businesses are using generators that require fuel. A stimulated economy will induce a cascade of increased production, reduced cost of living and create jobs.
We do not need to belabour the point but it makes economic sense to reduce the cost of fuel now. In our previous statements and in particular one published on 14th January 2016, a detailed comparison of the cost of fuel in similar economies to ours was given. The PF Government did not heed our advice to reduce the cost of fuel then but we are hoping that they will do so now.
Charles Kakoma,
UPND Spokesperson
Ba under 5. You don’t need to command as if you are the producer and supplier. As here in Aussie even if we produce we pay more than you guys who are just mere end users. We know fuel globally has come down just like copper and other metals. You are quick to comment about the falling oil prices but you refuse when we tell you that copper has hit the lowest.
But Kakoma has given examples of SA. Edgar is lost cause. He does not understand economics..otherwise he would make different decisions ..start by firing Chikwanda
MODERN ECONOOMY BLA,BLA,BLA,BLA YOU STUPID ID1OT UPND LOSER. SHUT UP AND LET EDGAR LUNGU TAKE YOU TO THE PROMISED LAND.
Which promised land?? The $10 billion dept promised land???
why do you insult ? if you are beneficial please continue enjoying . don’t bhave like a villager
whats wrong with being a villager? villagers have superior wisdom than some of these urban politicians and voters
On the contrary when prices are in contagion you charge the same and when prices are in backward on you charge the same stocking up reserves in MONEY to create a haven on which you manage other liabilities of the economy especially that the lead commodity copper cannot offer you those VOLUMES and PRICE on which to create the Reserves
ITS THEREFORE right to maintain same price and TIME TO CREATE RESERVES even from the SLUMP IN FUEL PRICES as IMPORTERS just like exporters would when PRICES ARE SUPREME
TO KEEP CURRENT PRICES IS A RESERVE DECISION AND IS GOOD
You will never see that money you think is being saved, it all ends up in PF pockets.
UPND has become boring and irrelevant.
Petrol/litre in South Africa is ZMK11.5 equivalent. and in Tanzania is also ZMK12.00. And in Zambia is still between ZMK9 to ZMK10. So where is it cheaper???
Southern province it’s cheaper.
i agree with mr kakoma here. the truth is that power generated using fuel is costly and that is what most businesses are using. and this why a no. of goods and services are high. so the govt must seriously look at this issue. a 20% or so reduction will have ripple postive effect in the economy. ba chikwanda mwaumfwa mwebafyashi….not ukugongola apa nomba ni groth tulefwaya. tupange indalama within then mukangole within ngamulefwaya, not ukuya kubena fyala. mukakongolapofye nakufiiwa. oho, ok, akunsekeni!
………………………not ukuya kubena fyalo.
Mr Kakoma,get your statistics right.Do not deride on people’s lack of research attitude for your political gain.Go to globalpetrolprices.com and do the comparison.By the way SA inland prices stand at ZAR12.15,which translates to K8.50 approximately.For Zambia there is an extra cost of bringing it inland since we are landlocked.Cost of petrol in Angola,a producer of oil is above a dollar.Globally Zambia is at about USD 0.87.Please do not expose your ignorance,especially for those aspiring for higher public offices.It shows that even when you are voted in office your will fabricate stories to sustain your being in office.Shame!!!!!
UPND WILL CONTINUE RULLING SOUTHERN PROVINCE. HH WILL NOT WIN ELECTIONS EVEN IF WATCHDOG CAMPAIGN FOR HIM COZ THEY ARE ALL TONGAS.
YOU ARE AN *****! LOOK AT YOUR CORRUPTED MENTALITY. YOU LATE FATHER OF TRIBALIST MICHAEL SAYA TAUGHT YOU THIS DIRTY TRIBALISM. YOU GUYS IN PF ARE ALL DIRTY-MINDED. YOU ARE ALL EVIL. SHAME ON YOU.
Fuel prices are high because the gov’t must find other sources to bring in Revenue, especially with poor copper prices etc. fuel in Zambia is a luxury item for those with vehicles meaning they are just slightly above the poor. Cigarettes, alcohol are al guaranteed Revenue rakers in. People need them and will cough up. It’s just common sense when we are S stranded as we are currently. People don’t need to suffer this cost on their own. Car pooling with others will mean they can cut the cost. Taking Buses, unpleasant as may be from overcrowding is also a help. Bicycle? It’s time to help oneself a bit more. Only taking the car out when absolutely necessary.
agreed, governments need revenue and fuel is a great place to get it. In a time when Zambia is struggling to pay back debt – increasing taxation on fuel, cigarettes, alcohol does make some sense. However, there is a benefit to getting more money into the hands of the people. Historically, governments are poor money managers.
Moody’s Investors Service has cut Anglo American’s credit rating to junk status as plummeting commodity prices hamper the company’s ability to pay down debt
a higher business risk due to deterioration in commodities market conditions and a longer and more uncertain deleveraging period than previously expected”.let HH ring them back to zambia and make business
Ya I read that Anglo downgrade. Its a pity things are getting tougher globally with no sign of picking up soon. How I wish the cretin HH could win elections God forbid and fail lamentably to score any success economically. I fell to understand why these hyenas pretend that they don’t know the meaning of global village.
And this is the Anglo he said he will bring them to replace vendata and mopani.
@Pungwa. In addition to that they are cutting 85,000 jobs, two-thirds of their workforce!
Simple advice to UPND and Mr. Kakoma. You might want to start educating yourself on the facts before enlightening the world with your opinion. How about taking 5 minutes out of your day to research and educate yourselves a little.
Am off to the filling station to buy my Petrol at £1 per liter.
Information.HH wants to bail out Agro America after winning in august.Please Zambians be careful Agro America is dead company and their only hope is thru HH when he wins.He plans to bail them out.Ba HH kwena imano ayo.We can’t reduce the price of fuel.It’s normal everywhere.Ba UPND ukabaila na tribe party yabo
PRICE:
Month Price Change
Nov 2015 44.42 -7.69 %
Dec 2015 37.72 -15.08 %
Jan 2016 30.80 -18.35 %
Oil Prices are likely to stay below $40 a barrel in 2016 with Consumption below record levels seen in 80s and early 90s outstripped by Supplies
Countries who imports and previously negatively impacted by fuel Prices increases and Demand are now Positioning there reserves to ensure consolidation
Look at commodities as a portfolio of Investments not in Isolation short selling and going long , appropriately rebalancing the portfolio of commodities to ensure the class yields returns not…
not simply as isolated maize or copper on the sell side or buy side alone
In this case Gov. as a sole manager of fuel, when copper prices have fallen its time to use fuel price and volumes in consumption to reallocate and rebalance the vacuum left in the copper price slump, especially for that fuel not used for productive consumption matching elasticity’s of supply embedded in those products accordingly
especially that you do not control supply and purchase price but rather can exert control on price and consumption to stock up and recover from reserves spend or subsidies paid for in periods of prime prices
You have no control over supply and should prices rise, you will still maintain low prices as ever before /////
HH and kakoma have agreed about devaluation of currencies in Bostwana and South Africa. I thot they were saying the devaluation of kwacha is becoz of lungu. Learn to be honesty
Short selling, funny I went to see a movie yesterday called The Short (Brad Pitt, Christian Bale etc), to pass time because gridlock was really bad at the time I was travelling, needed to while away the time until it cleared.
It really brought a reminder of the last recession years and cause. The film asked judged the role of the main players ( banks, traders etc). The damage to world economy, and was very evocative. We are now at stage where people have been lulled into false recovery. But things have not made an impact on the players in terms of morality. HH is a capitalist that still wants to fool us that we can do better bringing in speculators to improve our economy. It’s worth for people to switch this film when it shows in cinema. The worked has serious issues to…
Comment: Upnd cadres can you Google Anglo American on BBC? Your hh can really lie.
In the resource sector the strategy for Anglo is to develop and off load but recently Anglo with its announced Financials is repositioning in almost all resources and concentrate on Gold or Diamond
The thinking even for Zambia is the same Fore instance if you follow the resource sector You will know that Anglo is either repositioning or disposing in sub Sahara I can give you examples of resources and mines on the list This is not Non Public Information its in the Public Domain
You have in Botswana all Diamonds continue with Datshaa placed under care and maintenance Orapa and others continue in operations
Namibia all mines in diamond sector Continues
In South Africa all Diamond Mines continues with reknown Kimberly disposed off
In Platinum all mines in Sub under reposition and restructure and others disposed off already e.g. union mine in SA
All core and Iron Ore mines in Sub Sahara to be sold or closed, the largest chunk in South Africa
Those who have capital have theirs to rationalise often with justification I this case you need to see the decision to disinvest and understand
Most of it is because of slump in prices of commodities resulting in difficult operational effectiveness and if you have a capitalist He will need to preserve his capital and maximise the return no question about it
peters sport on am just surprised with the admition of the devalued currencies in Botswana an SA.