Late last year, we saw an increment of 38.52% (K9.89 to K13.70) in fuel prices by the Energy Regulation Board (ERB). We were told that this reduction was due to the removal of energy subsidies coupled with a favorable exchange rate between the Kwacha and the Dollar. Today, ERB and the government have informed us that fuel prices will reduce by K1.20 representing an 8.76 % reduction. Of concern to us and what we would like to know is, have any of the following factors changed?
1. Have subsidies been reintroduced?
2. Has the Kwacha gained significant value against the Dollar?
3. Is the Saudi Arabia deal that was agreed to last year finally being implemented and now at work?
As far as we are concerned, the facts on the ground are just the same as they were at the time fuel prices increased upon lifting of subsidies. A factor that is currently significant and just around the corner are by elections. Undoubtedly, this could be perceived as one of the core motivations for this impromptu and unexplained price reduction. This then brings us to the main question of why government increased the commodity from K9.89 to K13.70 in the first place if it could be sold at K12.50 or less per litre? This inconsistency is an indicator that for a long time, Zambians have been unfairly overcharged for fuel,further entailing that further fuel price reductions are possible. As it stands, it is challenging for public transport operators to reduce fares as the sudden reduction in fuel price is hugely insignificant relative to running costs which have risen due to rises in toll fees, insurance and road tax among other costs.
By Andrew Mutila
NAREP Media Committee
Ndelolesha fye….
The man needs a third term…for what??????
Failure
Comment:Talking about toll fees, why cant they make it payable once or annually like it is with road licence. its not always that people have money to part away every day.
Why cant Govt let these Saudi Arabian people invest in INDENI Refinery since they have access to cheap crude and they will not accommodate any middle men?
The question whether the fuel price reduction is significant or not will only be answered if prices of goods starts coming down. After the price hike, the prices of goods all went up. But I can assure you that no prices will go down – there goes the answer.
In fact a professor in stealing n syphoning represented the friends yet the above factors continue to hit bad at us. A forsaken regime with a slogan of taking the country behind. In reverse gear, the explanation by professor syphoning is vague. Thieves r thieves imweeeeee
When a magician does a trick with his right hand always look at the left hand. No comments on statementby head of ZRA saying that they are assessing if fuel from S A should be permitted under SADC concessions, he says that they are already collecting duty and vat and holding pending decision….. is that why fuel has increase if not the case
2 scenarios. If it does not qualify what price will fuel increase to or will ERB say that they will maintain the price despite the fuel not qualifying
If it does qualify will price reduce,,