Fuel price reduction hailed

THE Zambia Congress of Trade of Union (ZCTU) in Muchinga Province has welcomed the reduction of fuel pump price by the Energy Regulation Board (ERB).

In an interview with the Zambia News and Information Services (ZANIS) in Chinsali today ZCTU Muchinga Regional Coordinator Nondo Kasanda says the labour movement in the area has welcomed the pump price reduction.

Mr. Kasanda who is also Zambia National Union of Teachers (ZNUT) Provincial Organizing Secretary said the fuel price reduction will go a long way in stabilizing most of the commodities on the market because the reduction of fuel pump prices will have spiral effects on other goods and services.

He said the reduction in fuel prices is an indication that the economy is stabilizing adding that the performance of the Zambian economy in the last two quarters has not been bad.

Mr. Kasanda said the inflation rate which now stands at 6.6 percent and the stabilizing Kwacha has greatly contributed to the performance of the economy of late, adding that the rebounding of the Copper prices at the London Metal Exchange to over 6,000 United States Dollars per tonne will further strengthen the Kwacha and improve the performance of the economy.

He appealed to transporters to consider reducing fares so that the ordinary Zambians can as well enjoy the benefits of reduced fuel pump prices.

And the Zambia Jubilee Coalition Muchinga Chapter says the reduction of fuel pump price as announced by ERB is a manifestation of President Edgar Lungu’s Government concerted efforts to revamp the economy through austerity measures as enshrined in the 2017 National Budget.

The coalition’s Provincial Coordinator Francis Kapyanga says the reduction has come about obviously due to the stable and steady appreciation of the Kwacha against major foreign currencies.

He further said that the stabilizing economy is a testimony and a sign that concerted efforts by Government to fully recover the country’s economy are coming to fruition.

Mr. Kapyanga said it is important therefore that other players in transport and goods provision sectors be compelled by the reduction to accordingly effect price reductions for their goods and services.

The Zambia Jubilee Coalition Muchinga Chapter Coordinator said Zambians must benefit from this fuel pump price reduction adding that other players in the business sector must pass on the benefits by reducing prices of goods and services in the same manner the adjust upwards the prices of goods and services when there is an upward adjustment on fuel prices.

In line with the Cost-plus Model that is currently used to set fuel prices, the Energy Regulation Board (ERB) has reviewed the current whole and retail fuel prices based on the most recent importation of petroleum feedstock and finished petroleum products.

The decision to review prices is also in line with the policy guidance that fuel price adjustments will be made periodically as fundamentals that determine them change.

The Government of the Republic of Zambia imports a commingled petroleum feedstock typically consisting of petroleum feedstock 41 percent; condensate naphtha (13 percent); and gasoil (diesel) 46 percent.

The new fuel pump prices as announced by ERB are Petrol K11.69, Diesel K9.89 and Kerosene K6.50.