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Alba Iulia
Sunday, September 20, 2020

Fuel reduction too little to have impact on the economy-FDD

Headlines Fuel reduction too little to have impact on the economy-FDD

The opposition FDD has described the 8% and 5% fuel reduction by the Energy Regulation Board as pure window dressing which will not have any significant impact on the country’s economy.

Commenting on the announcement by ERB that it has reduce fuel by K1.20 Petrol and K0.68 Diesel FDD Spokesperson Antonio Mwanza explained that the reduction was too little to have any impact on the cost of goods and services.

He said government should instead have restored the pump prices to the original prices which was there before they increase by 30%.

“The reduction in pump price of fuel by ERB won’t have any positive impact on the economy because it is very insignificant. The prices of fuel were recently increased by over 30% hence the 8% and 5% reductions respectively are too insignificant to cause any real positive impact on the economy.

“The reduction is too minuscule to cause a reduction in the cost of production; the cost of essential goods and services, the cost of doing business and indeed the cost of living. Prices of essential goods and services and the cost of doing business will continue to rise.

“If Government was serious in reducing fuel prices they should have restored the prices to the initial amounts that were there before the increments. That would have had a real positive impact on the economy. Otherwise, this is purely window dressing and it won’t help matters,” he said.

The country’s Energy Regulatory Board to announced that prices for fuel have been reduced effective midnight.

The new pump prices are Petrol which was at K13.70 will now be sold at 12.50 after seeing a reduction of K1.20, Diesel will be at K10.72 from the previous K11.40 after a reduction of K0.68 while Kerosine will be at K6.81 from K8.03, Low sulphur diesel will be at K13.01 from 13.69.

42 COMMENTS

  1. ANY REDUCTION IS GOOD.IT SHOWS HONESTY & THAT THERE ARE INDEED FORMULAS WHICH ARE FOLLOWED TO ARRIVE AT THE PUMP PRICE.

    • THEY INCREASE SO THAT YOU FEEL IT AND REDUCE SO THAT IT DOES NOT MAKE ANY DIFFERENCE
      ===================================
      Utter paradox!A sensible contribution from Antonio Mwanza for the first time. A kadouble digit reduction could have counted. Let’s just say, they have not reduced at all, at all. If they quietly reduced the fuel prices, I could never have felt it.

      ALL THE SAME; HAVE A HAPPY NEW YEAR Y’ALL! PEACE

    • THEY INCREASE SO THAT YOU FEEL IT AND REDUCE SO THAT IT DOES NOT MAKE ANY DIFFERENCE
      ===================================
      Utter paradox! A sen.s.ible contribution from Antonio Mwanza for the first time. A ka.double digit reduction could have counted. Let’s just say, they have not reduced at all, at all. If they quietly reduced the fuel prices, I could never have felt it.

      ALL THE SAME; HAVE A HAPPY NEW YEAR Y’ALL! PEACE

    • THEY INCREASE SO THAT YOU FEEL IT AND REDUCE SO THAT IT DOES NOT MAKE ANY DIFFERENCE

      A sensible contribution from Antonio Mwanza for the first time. A kadouble digit reduction could have counted. Let’s just say, they have not reduced at all, at all. If they quietly reduced the fuel prices, I could never have felt it.

      ALL THE SAME; HAVE A HAPPY NEW YEAR Y’ALL! PEACE

    • That is a massive reduction and in relative terms.

      How much will they be saving the whole year per household?

      Rail tickets in England and Scotland go up generally about 1.5% and my annual ticket result to an increase of about £40. Don’t you tell me thats not a lot.

      Reduction of 5% is an opportunity cost of approximately £100,00o in Zambia terms whatever that is Kwacha.

      Antonio Mwanza is a puppet who things he is more clever than he is. He doesn’t understand Macro or Micro economics. He is stuck in the mad and has no business being at the top vanguard of elite politics. FDD spokesman suits hi just fine.

      Don’t need give him more credence, because I said so.

      Thanks

      BB2014

    • That is a massive reduction and in relative terms.

      How much will they be saving the whole year per household?

      Rail tickets in England and Scotland go up generally about 1.5% and my annual ticket result to an increase of about £40. Don’t you tell me thats not a lot.

      Reduction of 5% is an opportunity cost of approximately £100,00o in Zambia terms whatever that is Kwacha.

      Antonio Mwanza is a puppet who things he is more clever than he is. He doesn’t understand Macro or Micro economics. He is stuck in the mad and has no business being at the top vanguard of elite politics. FDD spokesman is as far as he will go.

      Don’t feed give him more credence, because I said so.

      Thanks

      BB2014

    • That is a massive reduction and in relative terms.

      How much will they be saving the whole year per household?

      Rail tickets in England and Scotland go up generally about 1.5% and my annual ticket result to an increase of about £40. Don’t you tell me thats not a lot.

      Reduction of 5% is an opportunity cost of approximately £100,00o in Zambia terms whatever that is Kwacha.

      Thanks
      BB2014

    • Antonio’s knee jerk reactions lacks seriousness. Any reduction in price is good to a consumer.
      The issue is what will be the effect of this reduction on the general economy? Is it another dununa before the big increase we are all anticipating?
      People like Antonio & Chris Kang’ombe are the future of Zambia’s politics so please be better.

    • Could have made more sense to have frozen the fuel pricess at the current rates but then instead put the different (reduction) towards road repairs especially SESHEKE – L/Stone road which is currently a pain.
      When did any of those lazy GRZ top officials last traveled that road?

    • Help us with the formula. At the time of the 30% increase 3 or so months ago the crude oil was at its lowest and the exchange rate wasn’t different from now. Now the price for crude oil is almost twice the price then. Con men at work?

    • If they can remove the cartels in Zambia and corrupt ministers? fuel would be way cheaper than what it is. they steal from fuel to anything that gets to our country. whats a shame to see no has the heart to work for the people..

    • @Ichalo Lifupa, God bless you. I actually come from Mwandi but stay in Kabulonga. The last time I was home (Mwandi), was August 2015 and that was just after the announcement by Ms Saili of the RDC that the Sesheke – Livingstone Road had just been worked on and completed. To my surprise, the only option of the road that was worked on was the Livingstone / Kazungala part and the Kazungula/Sesheke potion was as bad as it had always been, especially the Kazungula/Mwandi part. It’s shameful that one part of the country is smiling while the other is in perpetual agony. Bo Inonge, do something urgently.

    • This is the kind of economics that has DOOMED many countries and Zambia in particular. The economics of FAKE pricing being espouses by Mwanza—KEEP PRICES ARTIFICIALLY LOW EVEN IF IT MAKES NO ECONOMIC SENSE AT ALL! So who does Mwanza proposes picks up the difference if not Govt through subsidies?

      Please people, there so many FACTORS that can influence fuel prices other than just the price of oil! Here in the USA, even SPECULATORS’ SENTIMENTS (which are complete opinions than facts) on Wall Street can affect prices of oil at the pump. Even speculations (or anticipation) that a lot of people will drive/fly during certain national holidays (say Thanks Giving,) whether it turns out to be true or not, tend to affect prices at the pump. So this obsession with oil prices alone as the only…

    • @ Sinono, is it not you same people who have insulted my Party’s intelligency by finishing the Mongu Kalabo road in your same province? You have said this govt does not think by doing such a road instead of giving people food. What are you people saying? You have said people cannot eat roads now you want the road.

  2. Was this reduction necessitated by market forces or was it because ECL said they would so in his New Year message? If he it is because of him, then he is again interfering in economic policies that will adversely affect Zambia’s performance overall.

    • I totally agree with you. once they increase, everything changes but when they reduce, nothing changes. If by tomorrow they decided to increase by the same percentages that they have reduced now, you would still see bus fares going up. Its crazy

  3. Mwanza than reduction on a large scale is in millions of kwacha loss to government revenue. You can ask Ms Nawakwi how these mechanics work instead of embarrissing your party

    • Bwana @5, the government is just looking at the revenue side. It would make a huge difference if they can also look at the expenditure side and rationalize expenditure. Left unchecked, uncontrolled government expenditure is what will lead to more unfavorable new taxes that will ultimately choke the economy to death! That loss of revenue can be looked at in the positive sense of easing the cost of doing business thereby stimulating economic activity. As a country, we need to quickly get back to the Mwanawasa / Magande / Fundanga fiscal discipline or we are doomed! Yes your business may do fine for a little while but think of the bigger picture. Crime also goes up when the economy fails and we all become victims. Government must start a serious cost cutting drive as experts have advised on…

  4. These guy a bunch of jokers. They kept the pump prices high when world prices had dropped. And now this little insentive. Its too little too late.

  5. This is how a rat behaves also. It bites big time and soothes the pain soon after. In reality Zambians are being eaten while they are busy playing petty politics on social media.

    A better way to look at this to think in terms of the impact to the food busket which is a better guide than just speculating.

    The sad reality for the Zambian economy is that once prices of goods and services go up, they never come down by appreciable margins. Going by this historical pattern, this reduction does not change anything.

  6. Nothing is ever good for some people surly what more can one ask for. Do we truly have to be this negative even on a good price reduction. It’s a ngwee that makes a million so come on people ask yourselves when and what have you done for the country before you pass your under five comments.

  7. Lets give credit where it is due. If the govt wanted they would not have reduced fuel even by a coin but this is a step forward.

    But I urge the PF Govt to pay extra attention to strategic institutions like ZESCO, Indeni etc. While we are told to sacrifice for a better economy, we hear so many stories of Indeni distributing billions of kwacha to opposition linked companies in the name of Pension under unclear circumstances and the PF govt is just watching.

    I believe once we close all loop holes in the system our fuel will be even cheaper than this. But this reduction is a step forward bo PF.

  8. One day you buy a vehicle & you will feel the impact coz that’s 1l which we used to buy at K7 & wi kana unless if you are fool.

  9. An 8% reduction per litre means a saving of circa USD0.12 cents per litre. The saving is insignificant to change prices in general. For example Kombis will not change their fares becoz of K1.20 (12 cents) reduction. Therefore these fuel reductions will have minimal ripple effects on prices in general.

  10. Lusaka times are partisan pf backside lickers. Because I a upnd supporter won best blogger they don’t want to announce kikiki everyone saw that I won fair and square. Don’t be cowards. You cannot cheat people. How can it take you over week to announce votes that were already counted by a computer kikiki

    • very true my brother spaka. I have proved that lusaka times are biased towards PF. Eventually I successfully campaign for this site to be desserted by bloggers. Surely why cant we have unbiased media. What is point in reading news that is full of lies.

  11. Sure that wil make a difference. Let them consider more reduction in near future. Government should find away to ensure prices of goods and services are reduce

  12. I want some one in authority to take action against Kalulushi Filling Station. These chaps are still selling fuel at the old price claiming that the person who is supposed to change the metre is coming from Lusaka. But when the price was increased from K9 to 13.70 the change was done in seconds after midnight. This is theft.

  13. Petrol stations have not reduced the fuel prices in chingola since morning and most people were astonished by their traditional violation of the law. It is only during increases that Chingola fuel stations abide to announcements but during decreases they wait for someone to come over and switch the price. Is this the way we are going to operating as a country in this new age? Is it a new norm supported by ERB? I suspect the pumps at most filling stations country wide are not calibrated thus a lot of theft is going on in this industry.

  14. FDD please know that a reduction is the opposite of increase. Also be educated that a mountain is made up of small grains just like the anthill. These small reductions shall one day become significant to make that impact you are looking forward to. By the way how are you fairing as a party? If Nawakwi was to withdraw the little she’s contributing, would it have any negative impact to the operations of FDD?

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