THE decision by the Government through the Energy Regulation Board (ERB) to remove subsidies on fuel will benefit Zambia’s economy and must be taken in the stride it is made that it is meant to save money to go into other developmental projects, Former Vice-President Enoch Kavindele has said.
Mr Kavindele said in the past, fuel subsidies only used to benefit the rich and not the poor people. On Friday, ERB vice board chairman Professor Francis Yamba announced that in line with the policy decision to remove fuel subsidies and the current policy direction to migrate to cost reflective pricing of energy services and products, it was decided to raise the price of fuel. In an interview with the Sunday Nation, Mr Kavindele said, in his opinion, the subsidy removal on fuel would certainly assist Government remove the problem of subsidising the rich.
“Zambia has been subsidising fuel for a long time, fuel which we don’t produce, fuel which we have to import from afar. So hopefully the money which was going to subsidies will now go into developmental projects. “This will benefit the economy since the money being saved can go into other development efforts of government,” Mr Kavindele said.
He also cautioned to stop wasting resources by buying fuel for some government officials and ministers. “What Government must do is reduce on the amount of fuel given to government officials and ministers because there is a lot of wastage.
“There are some officials including ministers who have about four/five government vehicles and each one of those is supported by government budget allocation,” he said.
Mr Kavindele said in future Government should consider giving vehicles to officials but let them buy their own fuel so that everyone was in the same situation. “US$1 billion per year is spent on subsidising consumers of fuel, so now Government will save that US$1 billion and apply it to other developmental needs that is the saving that will benefit the economy.
“I know, because we have been used to subsidies, the shock is there but that is meant to benefit the economy,” he said. Mr Kavindele said there was no Government which wanted to punish its people, adding that every Government wanted to do things that were for the benefit of its people.
“So I think this we must take it in the stride it is made, that it is meant to save money to go into other developmental projects,” Mr Kavindele said. He, however, observed that almost all governments had a tendency of failing to explain to its people the benefits of certain measures they take. Mr Kavindele said the decision to hike fuel price needed more discussions for people to understand what benefits would arise from the removal of subsidies on fuel.
Of course, we know that you can’t condemn the hike in case the great leader revokes the North West rail project.
He is saying the truth.
Kavindele is right.
Thanks
BB2014
Begging beggars will always say things to support rubbish in order to eat!!! Kavindele is not normal since those old women danced naked around his tent when he challenged kaunda in kabwe many years a go, the man needs cleansing!!!
Ba mushota pliz, we all know that fuel prices affects everybody the rich and the poor. Transport costs will go up consequently food prices will go up because you have to factor transport costs and every Zambian needs to eat. SO how exactly will this benefit the poor?
Ministers have 5 cars, how do you use 5? A worker not a businessman like Kavindele. Explain for me, for how they work.
I have a 6 passenger and 2 passenger car, and already feel too much.
Njala yamunyokola mambala!
Kavindele has spoken……
More walking will mean weight loss and healthier living and less costs on health care.
Well said Kavindele. Only people with little or no understanding of micro and macroeconomics can dispute this
Well, any increase in the fuel prises does affect the economy negatively.
What kavindele should say is that the government will make a saving which money can be available for service delivery.
But to say the increase in fuel price will improve the economy is a misplaced statement.
Kavindele statement are a two sword.
-Has the govt stopped subsidizing fuel to ministers and ps.if not then the $1billion will still be there.
-95% of the money from fuel subsidy will be applied towards loan repayment and annual interest on euro bonds.
Creation of four ministries means more expenditure from the coffers.
He should have been brave to provide business approach principles and not the belly economic rhetoric.
Listening to Rudi Giuliani & Newt Gingrich trying to explain away gropegate & urging americans to vote for Trump I’m left to wonder what really happens to these old men.
The question is how many times can the same subsidies be removed by PF? Instead of admitting their failure to manage the economy they are busy taking it down by punishing innocent Zambians. We can’t have a President whose program we don’t know. Levy pursued fight against corruption & misuse. He jailed thieves, brought Kwacha down to K3.20, left Dollar reserves amidst global economic recession.
Levy fought to correct the messy Chiliba left like HIPC.What’s Lungu’s economic program for the Country?
We can’t just continue praising someone simply because of ‘ni uyuwine Sata atashila’ despite his failures. Sata was not anointed to decide our future esp that he was the genesis of the current problems. The his successor instead of improving he is worsening economy.
PF with your simplicity approach to life reality need not worry just wake up & ‘print more money’ & distribute 2yo cadres only & will still afford decent life. With such an ‘Outbreak Of Money’ in yo cadres’ pockets will still vote for u regardless of damage to the economy. Another Idi Amin in the making!
“But only the opposition Will have been dununa reversed?”
Kavidele no fuel na economy yanyoko? Just go and finish the railway line project in North Western province then you’ll see the effect on you operations and you poor tribesmen. Shut it Kav.
Muzanya this time, this is what you voted for in Micheal Sata.
Neutral,
Zambians alone are the genesis of the problems the country is facing because of indecision. They said multipartism but now they don’t want to accept results of a multiparty system. The said chiluba is a thief, Chiluba left and Levy Mwanawasa came on the scene. Zambians said Levy had a family tree around him, levy died and RB took over by 2011 the zambian economy was doing well but zambians like all these upnd characters stabbed RB in the back with the kwacha dollar exchange rate at 3.5 to 1 dollar.
Now you want to say Lungu is at fault? Grow up ba mambala.
@musune
Sata is genesis of current problems. Don’t be an ostrich! Zambians trusted him with power on premise he was going to deliver. What Zambians didn’t know is the man was just myopic & had no program. All he knew were simplistic ideas of spending thru over-borrowing without repayment plan. What I’m saying even if he was around he wud hav failed to steer us out of his own messy. Wrongly famed “Man Of Action” yet even those roads were just a continuation of Levy/RB Urban Roads. He was just luck RB left EuroBond $750m & reserve Bank $200m which he misused else he might hav found his start very difficult.
Point is if yo predecessor messed up like Chiluba, the successor like Levy shud improve things. I agree RB built on Levy’s success. Levy/RB ruled thru severe world economic…
The Point is if yo predecessor messed up economy like Chiluba, the successor like Levy shud improve the economy. I agree RB built on Levy’s success. Levy/RB ruled thru severe world economic meltdown so what is PF’s excuse when other countries are performing well. Lungu was supposed to change economic direction 4better from Sata’s but he has no program to follow.
UPND didn’t stub RB in the back, its the Northerners who wanted their own or at least somebody who speaks Bemba fluently like Lungu regardless of qualities.
I fail to understand people like Enock. How are the people of Zambia going to benefit from this. Yes him will not suffer but what about the poor commuters?
NOT ONLY COMMUTORS GUYS. EVERYTHING WILL GO UP BECAUSE IT HAS TO BE TRANSPORTED
Kavindele is just a Lungu sycophant. His comment reminds me of the other PF00L who claimed that loadshedding would have no economic impact. PF00Ls are essentially brain dead.
Of course it will be painful for commuters but the fares can be worked out to manage it. Overall hiwever this is meant to benefit the nation..
Don’t worry we shall get used to it as we always do, S o ba UPNDwhat solutions are you going to bring the table in 2028? We already know that HH last week condemned subsidies on energy including fuel, so on that we are on the same page what do you say UPND?
this is the problem you chaps fail to understand. its not about winning or losing the election here. it is about zambian saying, you were the govt of the day and these factors went wrong during your watch, now whether is was you fault or other external factors that caused the problems, we zambians are going to teach you a lesson by removing your from power. In short when things go wrong we remove them from office so as to teach a lesson any would be political aspirant to say, when you are voted for, tell the truth about what it is you can do and not lie that we shall do so and so. If we continue voting for people despite evident failure during their tenure, then we are endorsing anybody to come and abuse us as they so please knowing zambians will say nothing. It is like a child in the…
house who is not disciplined for whatever wrong or mistake they cab make in the home. the child gets spoiled and in the long run continues to abuse his rights in the home withour fear or remorse. is it not the case that happened with the current president. blatant disregard for the constitution and he didnt even flinch or scare because he knows the zambian people wont say nothing or discipline him. we create our own problems. we need to punish the wrong doing child, and in politics you do this,as a people, through the vote. Imwe kano baikata ku bunga elyo mu zanada. ifya shala awe. no water, no electricity it is ok. Make the guy under whose watch it happens responsible and punish him
Sorry 2028 is too far for HH to lose again, I actuallly meant to say 2021. Kikikikiki…
Don’t worry about HH. This fuel increase is nothing to him. However, your relatives, in case you are abroad, will be on your neck every day asking for tandizo to stay alive. If you are in Zambia, your fuel bill has gone up by 38% immediately. You have to cut your costs somewhere else to survive. There’s nothing to gloat about here. All Zambians are losers because of the tribal idyotcy of Wakos and Bembas.
I can’t imagine the price of fuel when crude gets back to about $100/ barrel. K27.4 / litre!!!!.
But patriotic fools promised us to reduce fuel to K5.5 per litre and which Zambian will benefit from subsidies removal apart from our great drunken master and his fellow pangarian Family (PF)
When the President went to Saudi Arabia am I the only pnevwho heard Dora Siliya informing us that Zambia has clinched a deal for cheap oil and that it would be available in two moths time. In addition what is the Permanent Secretary Charity Mwansa and the Director of the Department of Energy Charles Mulenga doing in court allegedly over an oil deal gone wrong?
I wonder which subsidies have been removed. It looks like there is a lager of subsidies on Zambian fuel. Last time which shud b last year,fuel was increased because subsidies were removed. This year another layer of subsidies? How many are remaining? THIS NONSENSE MUST STOP! Zambia’s fuelprice is currently higher than currencyless Zimbabwe. Is President RG Mugabe still subsidizing fuel? ERB shud remove the layer middlemen and not subsidies which don’t exist. Na word kuti yafulwa because of abusing it
There is no country without subsidies… Even if Zambia removes all the remaining subsidies,without prudence in the use of the resources nothing will take place… Government needs to fight corruption first…act on the auditor generalz report
Zambians please prepare for a tax hike as well. We have to rebalance after 5 years of reckless rule. Here are some of the reasons why you will pay higher taxes beginning 2018:
– Renaming airports,
– randomly creating and dismantling Ministries,
– unplanned redistricting,
– foreign medical trips,
– unbudgeted roads,
– several by elections,
– unnecessary District Commissioners
– overpriced roads
– several foreign missions
– wasteful subsidies
The Govt through ERB should have streamlined the procurement of fuel into Zambia. Cut out any middlemen and deal directing with the OEMs. In Southern Region, Zambia has the most expensive fuel in USD. Increase in prices for Energy (fuel and electricity) will definitely affect price increase in food and transportation. This will affect everyone, rich or poor, though the poor will be the highest hit.
Since when did the increase in the cost of doing business ever stimulate a poor economy. Common sense will dictate that Zambia economy needs to stimulate abs facilitate growth of small business and enterprise for economic development. And you dull comprised kavindele who has won contract due to licking lungus m!unyelo wants us to believe that this will be good for the common Zambians. Kikiki ubupuba
*beginning 2017.
Let us learn to protest waste when we see it and not just cry over higher taxes of higher fuel price.
Without a tax hike, Zambia will be going in circles with no one willing to lend us more dollars. For long can your neighbors lend you money, when are not willing to cut your daily swig of a brown one while beating your dependants everyday? At some point we have to learn to pay our own bills.
@12 NEZ, be careful dont’t dare fontract your God. On fuel and electricity HH and governmemt are reading from the same page. In fact if it was in his power HH would have increased fuel by K6 per litre going by his estimate of subsidies. Didnt HH say subsidies on energy are $3bn instead of the official $1bn?
Flash back….
President Lungu’s economic diplomacy has continued yielding results. He is currently in Saudi Arabia where he is signing big deals that include:
1. Construction of a mordern maternal and paediatric hospital. This initiative started under Dr. Kaseba. Madam Esther Lungu picked it up and now it is being finalised.
2. Oil deals which will see the cost of fuel go down to as low as K5. 5. per litre. Negotiations have been going on and finally the deal will be signed.
3. Funding of 10 more irrigation dams. Zambia is fast becoming the food busket for central and southern africa. President Lungu wants to expand investment in irrigation.
4. Funding of phase two 600MW solar plant. The 600 MW phase one is being funded by World bank through IDC. Hon Dora…
5. The president has pledged to create 500 000 jobs by end of 2016.
He has also opened mulugushi textiles with the immediate employment of 300 workers this rasing to 20 000 beneficiaries this growing season due out grower cotton schemes.
Terrible go and watch the 2016 election debate on Muvi TV ,see and hear what HH said.He had more solutions on Fuel ,he proposed the removal of corrupt middle men in the procurement of fuel that’s is what is causing prince hikes.He further talked of restructuring ZESCO were Generation , Distribution and Commercial department will operate separately and allow private Companies compete with Zesco. Currently ZESCO has over employed in the commercial department than Generation and Distribution of power.He further stated of Government investing in alternative energy such Solar farms though he emphasized that Hydro is still viable and is being under utilized.
AM JUST THINKING OF HOW ZAMBIA WILL BE BY NEXT MONTH ESPECIALLY NEXT YEAR IF ZAM SEED IS SELLING 10KG MAIZE SEED AND UP TO NOW PEASANT FARMERS WHO ARE NOW YOUR SLAVES HAVE NOT BEEN GIVEN THEIR MONEY THEY SOLD FROM FRA
HH is not normal
???
PF idyots dream of HH every day! It is not HH who increased fuel prices. HH is in police custody somewhere while Lungu is screwing your arse, idyot. PF00LISHness has no bounds.
As painful as fuel hikes are. Subsidies really need to be removed. A little at a time though. Subsidies killed NEC stores and ZCBC.
unless you dont understand basic principles of taxation, one of them is the redistribution of wealth through subsidising certain basic needs of the ordinary citizens who cant afford to pay for those services, viz a viza, health care etc
Exchange rates necessitated increase in fuel, subsidies are yet to be removed! Read the last paragraph of the ERB notice you moron!
Pay retirees kaili
In principle it is a good economic strategy by the government to save and rise monies for developmental programmers. but my worry is that the same monies taken away from the citizen will end up been misappropriated by some selfish individuals as always cited by the auditor general’s report every ye and These some people are nave prosecuted.
The rich will get richer while the poor will get poorer. Why not also reduce president and cabinet salaries to show pf is concerned about the poor
I am surprised that Mr Kavindele would spring up to explain the hike. Is he now part of the establishment or is he part of the chain acquiring the crude oil? The bone is why this policy should be effected when it was not part of the PF campaign manifesto. Isn’t this duplicitous and dishonest? All people want is honesty and integrity.
This Kavindele idi*t has no heart for his own people in NW province who have to travel very long distances to schools, hospitals, markets and work areas. Most use vehicles, they do not walk or get on trains.
Now who pays for that fuel, you f**ker? Have heart for your people at least.
You are brock mr kavidele busy trying to eat from the government foolish you man
SO NOW THAT SUBSIDIES HAVE BEEN REMOVED ON FUEL THE GOVERNMENT CAN BACK OFF AND LEAVE FUEL TO PRIVATE COMPANIES? WE MAY GET IT CHEAPER IF PRIVATE COMPANIES PROVIDED THE FUEL.
Fuel is expensive because of Kick-backs paid to Ministers & other beneficiaries by Oil Procurement companies supplying crude oil to Zambia. The cost is passed down to the Zambian consumer.
Same applies to cost of roads per kilometer which is one of the highest in the world.
Beneficiaries start from LUNGU himself. That’s why DORA was transfered to Ministry of energy last year, so that they would seal Oil procurement deals negotiated by RB & sons. Shameless thieves.
we the tax payers only want to see accountability and transparency with the money saved.We want to see the AG report with a very balanced expenditure and transparency.We the taxpayers will not entertain rhetoric
On whose behalf is Kavindele talking who sent him, Zambians or his family.
So for how long are we going to sacrifice. Every time is future future.Government must put in place measures to cushion the severe effects of fuel hike. No rhetoric propaganda here.
We want to hear the UPND petition. It does not matter if HH never becomes president what matters is the purge of the raping of our young democracy and setting a president of disputed elections is forever banished.
All avenues to prove the vote was not stolen must be exusted for future elections.
We don’t care about HH becoming president it is stealing of votes and the abuse of elections that matter for future generations…..
One obvious problem in Zambia’s malaise is that it has a President without a plan and incapable of having one (Is there anyone who is able to claim otherwise by producing the President’s plan?) The other is that the PF has no sophistication at all, to be involved in a 21st century world. What is Zambia doing with a lot that has nothing but ‘ukulilapo’ as its only word from the vocabulary?
When the transport costs on the roads become unbearable due to high fuel costs, people will resort to railway transport and Kavindele will be the biggest winner with his n/w railway.
this fuel increament is immoral on several grounds. 1. not long ago we were proudly informed that HE Lungu has clinched a deal with the saudis that will make our fuel cheaper.
what explaination are they giving for that? 2. just a few days ago we were informed that subsidy removal will be gradual. there is nothing gradual about a 38% increament in fuel price. this is the highest fuel price increament in africa by far! 3. the post newspaper still owes tax, they are still operating and we dont know what the hell is going on but as ordinary zambians we have to pay through our noses through this fuel increament. i dont like this development a bit and it should be revised!
@29 Spaka, you mean to tell me that up to now you have mot read the constitution?
1. The constitution is very clear about the 14 days limit and there is a good reason for that limitation. This clause is not the same as the normal legal disputes where you can argue forever in the name of human rights. In this case you cannot have human rights for HH and ignore the human rights of ne and many other Zambians who must have a President as quickly as possible.
2. The 14 days is more than adequate for any serious and organised petitioner to prepare and present his evidence. But my human rights will not be held to ransom while HH takes 14 weeks to organise himself including staging armed robberies to steal ECZ information. Why didn’t HH present the three PVTs if he had them?
3. So you mean…
What ‘other developmental project’? So it doesn’t go to pay off the Eurobond debt? Since when does destroying demand by reducing subsidies ‘benefit the economy’?
So why are fuel prices rising now?
Kavindele is now a disappointment. we have had subsidies before but money had been channeled to PF campaigns and other propaganda. just tell the truth that you want to please, Lungu because of your NWR project.
The last thing that HH wants to see is for the government to restructure the Zambian economy for the benefit of the people successfully. After the departure of Canissius UPND has reconfirmed its tribal nature through HH no less who insulted easterners followed by a chorus of his followers shouting mice eaters. Some have even gone further to ressurrect the bemba monkeys mantra as if they know that GBM will be next to go.
Terrible… i now understand that there are guilible people in this world! please watch this space and advise us after 1year if you still think PF and ECL are doing anything for the benefit of the people. they have shown you in 5 years that they dont know what they are doing. yet you are busy following their propaganda and when they change and do the opposite you still make exuses for them!
There’s no transparency and accountability. This government has not told us how much was saved that time when the late Sata removed subsidies from maize and how it was utilized. Now fuel subsidies have been removed. Global oil prices are down but here this is when they are increasing. Oh God, who is going to save us from this cruel regime!
atleast ba kavindele u have made govnt happy probably u will be given a go ahead on your Benguela rail line. otherwise the increase in fuel will make the cost of living very high. and we have never seen the benefit of removing subsidies in the past.govnt is just raising money to pay salaries. u will realise that by last month govnt were owing salary arreas for MPs for two months.
The argument that a cause-effect relationship exists between fuel subsidy and economic stagnation is misleading. For developing countries, affordable fuel can contribute to improved transportation. Affordable fuel does not necessarily lead to wastage. Low taxes alone lead to more disposable income for investment. Where is the model? Affordable energy is a sine qua non of industrial development. Talking about bio-fuels makes a lot of sense. Talking about blending hydrocarbons with bio-fuels makes a lot of sense. The negotiations with cooperating partners in bio-fuel are long overdue.
The increase has been effected and what now remains is for the Government to put positive controls on the movement of ministerial vehicles and consequently save on cost of running these big cars otherwise the savings shall be swallowed.
The current cost of Petrol in South Africa is just below R12/litre and its not subsidized. How do you explain R20/litre in Zambia. I know you will say South Africa produces petrol through Sasol…..It may but that’s a drop in the ocean. The bulk of it is imported. Petrol in Zambia has never been subsidized..it is a lie. Gives the breakdown of import cost per litre !!!
I’m a Bemba by tribe according to my research we are being used by the people from eastern province and we are busy insulting our brothers in southern province. we need to work up we are sleeping. look today a percentage of people who have been appointed are from eastern province. in fact those people they did not help us in all vote we have been having. Chiluba was not voted for they voted for UNIP Kaunda from Malawi same to Sata they voted for MMD because of Rupia Banda. If I take you back during election between Sata and Rupia after the death of Mwanawasa . Rupia was preaching to the of people Eastern Province that wako ni wako meaning your tribe’s people is your people angain he did the same this year to Edger Lungu. why is that Rupia and Kaunda is supporting Lungu. the people in…
The news was supposed to be on his call for govt to cut huge fuel supply to Ministers. Even when you remove the fuel subsidies, it is still the poor that will suffer more not the rich. Govt Officials and rich people like GBM won’t feel any pinch. The heat is still coming on the poor citizens of this country. Govt Officials overspend our money on themselves hence we suffer instead.
KAVINDELE IS A DAY-DREAMER, AND WILL ALWAYS REMAIN A DAY-DREAMER. NEXT LUNGU’S GOV ERNMENT WILL SAY THEY ARE REMOVING SUBSIDIES ON MEDICINES WE ARE GIVEN IN CLINICS AND HOSPITALS. WHAT IS GOVERNMENT THERE FOR IF IT CAN’T MAKE PEOPLE’S LIVES BETTER EVEN IF IT IS THRU SUBSIDY?
How many times is this govnt going to remove subsidies??
OK ZAMBIANS ; the current cost of crude oil/barrel is about $52, roughly 468 kwacha at exchange rate of 9 kwacha.
A barrel is 159 litres, therefore cost of 1 litre of crude oil is 2.95 KWACHA.
In India, the total cost of refining and transportation is 9.5 US cents or 0.855 kwacha. Double this for Zambia due to negligence, 1.71 kwacha
Total cost of crude oil purchase, refining and transportation /litre =4.121 kwacha. Add whatever taxes you what to add, it will never come to 10 kwacha. Lungu’s government never subsidized Zambians.
So how do they arrive at 13.7 kwacha per litre? Simple; this is what goes in their pockets through their relatives and close friends middlemen.
So what is the solution? ERB must come up with a transparent formula which links price of crude oil, exchange rate and inflation to the pump cost of petrol. The prices cannot continue to be determined by state house then passed on to ERB for implementation, because state house is going to factor in corruption, the money they get through their middlemen.
It is true.Subsidies are enjoyed by the rich.Are they not on imported chocolates? Please fellow citizen.Can’t you see that our holy Christian leaders are simply telling us to start eating wild berries,fruits and roots?They mean well.I feel for ignorant.
The rational behind subsides removal is okay.If $1bn savings per year is allocated to projects such as health post,road net-work,and not forgetting income generating investments,Zambians stand to benefit.The onus is on the leaders who will be overseeing the money,are they trustworthy?,do they mean well to Zambia? Why is it that a section of Ministers are questioning the concourt ruling of them to reimburse the money they were paid illegaly?This measure should be extended to cabinet ministers and the president.Let them come in the open and show us how they are also sacrificing especially those who don’t even want to payback our tax-payers money.
Kavindele should taken just as he truthfully is SEBANA WIKUTE
Muzachiona those living in Zambia and voted for a chakolwa. Why didn’t they do this 3months before General elections?
A hapless clown singing for his supper! Kissing the boss’s hand to have crumbles thrown his way!!!
Has Kavindele ever driven on the road to his tribesmates going to Solwezi? The road is in bad state so to speak. The area NW province is now the major copper export at the moment but alas a poor road net work. At the moment Copperbelt area is not exporting much of it’s copper .Mining and export of minerals has shifted from CB to NW province and yet govt has for a long time neglected the people of NWprovince by not tarring there main road leading to there locality.What will happen to trucks transporting minerals from North western if the road is still left un tarred? You wounder isnt Lucky Mulusa and Kapita who meet the president nearly each month coming from that province?.This province should have a good road net work in the first place!
Kavindele is right.
All in all we need a serious cost reduction.The only people who should be entitled to free fuel in my opinion is his Excellency,the VP,Defence and Health.
The rest should pay for their own fuel all ministers,deputies,goverment heads in this category Permanent Secretaries.
There is also a need to advance loans to these people so that they buy cars,maintainance and repairs should be paid by themselves.
This needs a change of the mindset which can result into a transformation of the economy