Zambia's Energy and Water Development Minister Ms. Dora Siliya speaking during the Trilemma Ministerial Roundtable discussion at the Africa Energy Conference in Johannesburg
Zambia’s Energy and Water Development Minister Ms. Dora Siliya speaking during the Trilemma Ministerial Roundtable discussion at the Africa Energy Conference in Johannesburg

Energy Minister Dora Siliya has ruled out any reduction in fuel pump prices in the country as long as the exchange rate remains volatile.

In a ministerial statement to Parliament on why fuel prices in the country have not been reduced despite oil prices on the international market reducing, Ms. Siliya says the depreciation of the Kwacha against major convertible currencies has cancelled out any benefit that could have reflected in reduced fuel pump prices.

She says with the volatility in the exchange market, it is not prudent to adjust prices in any direction until such a time when the direction of the exchange rate is certain and predictable.

Ms. Siliya adds that while the international prices of oil have fallen, other cost elements in the cost-plus that need to be fully accounted for ought to increase.

The Energy Minister further states that the commingled petroleum feedstock that Zambia imports is relatively higher on the international market than that of pure crude oil which is normally quoted on the international market.

And Ms. Siliya says Zambia continues to be one of the lowest in the region in terms of the fuel pump price.

She says government is currently subsidizing the price of fuel in order to cushion citizens against price fluctuations.

The price of Brent crude oil on the international market is currently at US$34 per barrel.

[Read 45 times, 1 reads today]
Loading...

28 COMMENTS

  1. Ku nkongole kwena tamutontokanyapo pali exchange rate but kuli fimbi ati exchange rate…… reduce even on your borrowing because the repayment amounts will keep on going up for as long as the exchange rate is not controlled…. awe tuletekwa naba Chagwa awe tefintu

    0

    0
    • ati exchange rate is volatile,,, its only volatile to the kwacha,,,,,,

      Some one help me! Dora seems to be so sweet te!, presidential material ka! RB was confused and Lungu is more confused!!

      0

      0
    • You can’t put a good man down…stop blaming Lungu…Namibians are complaining…is it Lungu’s fault..South Africans are crying…is it my beloved President Lungu ‘ s fault….let’s be real…just say you want regime change but again mulabeja…The mighty PF will knock HH out….
      We have the likes of Mei Matungu and Ndobo plus my friend Chils….anyway I will talk to you guys after elections…just don’t hide

      2016 vote PF ( Edgar )

      I thank you

      0

      0
    • You are absolutely spot on…they are borrowing like its “buy one get the other free” with absolutely no care for tomorrow or exchange rate!!

      0

      0
    • I must admit that Dora is a political heavy weight in zambia. She has been doing her job well as minister of energy. Keep up good work madam Siliya and please don’t succumb to presure to make you steal from the poor like what Rupiah made you do but do the best for zambia and make a good history about yourself.

      0

      0
    • @ndobo, volatile like erection. Dora please you are pregnant, reduce your 4 days demand on sex. No no no as long as Mulyokela is volatile…..

      0

      0
    • These government numb skulls make statements in an un- coordinated manner we were being told that chagwa and his team have stabilised the Kwacha ….and now Dora Bokosi njikatha is saying volatility in the currency is making oil price reduction impossible…

      0

      0
    • This shows dullness and stupidity of PF Ministers. very useless for Dora to give such as an excuse. Let UPND take over that country, enough with these corrupt Ministers.

      0

      0
    • She says government is currently subsidizing….
      When did PF lead govt reverse the decision on subsidizing fuel? This party is all about Dochi Kubeba, how many policies has this govt reversed without informing the nation? PF you are totally incompetent. Sad that we are still dealing with Dora who was got rid of in 2011, only to be brought back on the backdrop of wako ni wako sydrome.

      0

      0
  2. This is the PF i know when such words come from others the conlusion is that they are bitter but when it comes from the minister then it is news.
    PF told us that they have removed fuel subsidies today Dora says goverment is paying subsidies on fuel contrary to others.
    Today Dora says the exchange rate is votile when Kambwili says kwacha is stable.
    PF for us cry my beloved country for voting for such a party.
    Reduce the price of fuel madam enough is enough

    0

    0
  3. As soon as the exchange rate “stabilizes” there will be a ‘cost-recovery’ price increase based on adjusted, fluctuating oil prices.

    0

    0
  4. A. Fuel Subsidies:
    Herewith some archived reports from Lusaka Times:
    May 19, 2013: Let those opposing the removal of fuel and maize subsidies advance convincing reasons-Lungu
    February 12, 2014: K5.5bn saved from subsidies, Chikwanda tells Parley

    B. Fuel Pump Prices in the Region (Diesel – Source of Data: GlobalPetroPrices.com)
    (1) Lesotho=Us$0.62/L, (2) Namibia=Us$0.68/L, (3)South Africa, Swaziland, =Us$0.70/L, (4) Botswana = Us$0.71/L, (5) Tanzania =Us$0.72/L, (6) Rep. of Congo = Us$0.74/L, (7) Zambia = Us$0.76/L, (8) Mozambique = Us$0.77/L, (9) Malawi= Us$0.94/L, (10) Zimbabwe = Us$1.03/L
    From the figures above, Zambia is NOT the lowest in the region.

    0

    0
  5. “The price of Brent crude oil on the international market is currently at US$34 per barrel” (this is about K385)

    Google tells me one barrel of crude yields about 72 liters of petrol and 45 liters of diesel plus LPG, jet fuel, etc.

    72 liters petrol @ K10 per liter = K720
    45 liters diesel @ K9 per liter = K405

    Total revenue at the pump (excluding LPG etc) = K1,125 or about 292% more than a barrel of crude.

    Yes, there are a lot of costs (and taxes!) to get a barrel of crude oil into the car, but with K740 gross profit at the pump (K1,125 total revenue minus K 385 for crude) does this really require “subsidies”? And if it does, why isn’t Indeni being upgraded to work more efficiently? Surely, it’s the same dithering story as not investing in electricity.

    0

    0
  6. Cha chine its chipatepate Govt coz US$34 per parrel at least fuel was sapos to drop at 4 K and then goods could b droped.
    Since its Govt of CHIPATEPATE nothing can poor Zambian say, HH has been asking PF Govt to reduce on bhalf of POOR ZAMBIAN today ati EXCHANGE RATE but when its comes ku KONGOLE awe ni taputapu takuli no ku chelwa kwati fya mano.

    0

    0
  7. This is laughable…one would be mistaken for thinking she is talking about boiling porridge in a big pot…surely our leaders have taken us for empty tins given that the price of crude is at all time low!!

    0

    0
  8. Even the white lady behind her is confused by her speech. She’s trying to think how Americans would react to such statements! She’s like iye mayo! Hehe. No, but there’s some sense in her speech.

    0

    0
  9. WE SHOULD ALL GIVE CREDIT WHERE IT IS DUE. ON THIS ISSUE DORA HAS PRESENTED A REASONABLE AND CREDIBLE ARGUEMENT AS TO WHY WE CAN NOT REDUCE PRICES OF FUEL AT THE PUMP. THIS IS ALL WE ASK THAT GOVERNMENT BE CLEAR AND HONEST WITH THE PEOPLE. AS RESPONSIBLE CUSTODIANS OF NATIONAL WELFARE GOVERNMENT NEESS TO LEVEL WITH THE PEOPLE ON POLICY. THE GOVERNMENT IS NOT ACTING FOR EEXPEDIENCY OR POLITICAL MILEAGE BUT BEING RESPONSIBLE. GOOD JOB DORA. WE UNDERSTAND YOUR POSITION.

    0

    0
  10. PF cadres can’t put up a reasonable argument, all they know is just tribe! Where a normal person can openly say that even if Lungu is mad he would vote for him (Lungu) because he is not Tonga! This kind of hate is extremely dangerous.

    0

    0
  11. PF you mismanaged the economy then blame volatile exchange rates for the problem? Talk of the tail wagging the PF dog Siliya.

    0

    0
  12. PF you mismanaged the economy then blame volatile exchange rates for the problem? Talk of the tail wagging the PF dog Siliya.

    0

    0
  13. It is happening everywhere …even in the developing countries where I am now living …all fuel watchdogs calling for a reduction in the price of fuel..why not Zambia

    JN

    0

    0
  14. UBUFI DORA, JUST REDUDE PRICE OF FUEL, IT WILL HELP TO REDUCE COST OF PRODUCTION, AND HENCE CHEAPER COMMODITIES TO EXPORT MEANING MORE DOLLAR INN-FLOW, LEADING TO STABILIZING OF THE KWACHA!DO WE HAVE ECONOMISTS IN THIS COUNTRY? I REALLY DOUBT. CHIKWANDA EVERYDAY TELLS US TO EXPORT THATS WHEN KWACHA WILL STABILIZE. HE PRETENDS COST OF PRODUCTION IS VERY HIGH IN ZAMBIA, OUR PRODCTS CANT COMPETE REGIONALLY, INTERNATIONALLY! THINK! PROBLEM IS YOU GET FREE FUEL SOYOU CANT FEEL THE PINCH UNTIL YOU ARE OUT OF GOVERNMENT.

    0

    0

Comments are closed.