Tuesday, March 19, 2024

It is wrong to blame ERB for fuel price adjustment-Energy Minister

Share

David Mabumba
David Mabumba
Energy Minister David Mabumba says it is wrong for Patriots for Economic Progress (PeP) President Sean Enock Tembo to blame the Energy Regulation Board (ERB) for adjusting upwards the price of petroleum.

Reacting to Tembo’s statement that government should dissolve the current Energy Regulation Board for causing instability in the prices of petroleum, Mr. Mabumba said globally countries review petroleum pricing monthly in order to address international oil market prices and exchange fluctuations.

The Energy Minister in a statement unveiled to Pan African Radio yesterday said Zambia reviews petroleum pricing every sixty days because the cycle for crude oil shipment is forty-five days.

Mr. Mabumba further explained that in August 2017 the US Dollar was around K8.90 to K9.0 and in October 2017 the Kwacha depreciated to K9.75 and oil prices on the international market increased marginally.

In a statement yesterday Patriots for Economic Progress (Pep) leader Sean Enock Tembo said the ERB’s move to adjust upwards the pump prices of fuel are contrary to its mandate.

“It is wrong for Patriots for Economic Progress (PeP) President Sean Enock Tembo to blame the Energy Regulation Board (ERB) for adjusting upwards the price of petroleum” Mabumba said

21 COMMENTS

  1. The problem lies with govt. officials like yourself sir, Mr. Mabumba, who operate four 6 litre vehicles on free fuel and other costs. Remove those wasteful expenditures and everybody will benefit …

    • Thieves will always be thinking of ways of stealing from the poor. Howbeit, the economy will continue to dwindle with plunderers at the helm. Watch the space.

  2. The volatility in fuel prices in Zambia is not good for the economy. If a small change in the exchange rate (K9.1 to K9.74) will trigger huge adjustments in fuel prices, then we’ll be in greater danger when our credit rating is downgraded with the exchange rate suddenly going down south. We need predictability and transparency in the energy sector. Our fuel pricing does not make sense. We need a mechanism to absorb exchange rate shocks and shocks in world crude prices. When we plan, we should set a fixed fuel price say for the next 2 to 3 years regardless of what happens to the kwacha or the crude oil prices. That was the idea behind fuel subsidies. Removing them has put us on a slippery slope! Fuel is the life blood of any economy and so we should prudently manage it. Any fuel hike…

  3. Any fuel hike distorts economic fundamentals and leads to hyperinflation, high interest rates, more government borrowing and in the end it remains a viscous cycle of misery for the citizens!

  4. Is this not the guy who was prostrating himself before Jonathan. Do you expect him to say anything against Jonathan’s puppets after ukufukama like a beggar the way he did? We are doomed with this clowns as our leaders

  5. Delta the company holding the supply contract is conduit for corruption. They have no track record in the Industry. We have been captured as Nation a few corrupt Mwenyes…wake Zambians from Dalbit to Delta??? Why use middlemen in supply of fuel to the country?

  6. @Half Zambian
    You say we need a mechanism to absorb exchange rate shocks and shocks in world crude prices.

    The mechanism is prudent management of the economy. Stop government wasteful expenditure. This is increasing the deficit which adversely impacts the exchange rate. Stop wasteful government borrowing, which is currently pushing interest rates high and in turn affects the exchange rate adversely. Stop the general government mismanagement which is adding to the general cost of living and high cost of production. Especially the high cost of production, which leads to unit costs sitting on the exchange rate.

  7. My questions is: Why does ERB always choose to announce the fuel pump price few hours before it is effected??? Why not announce say, a week before so that the unnecessary congestions at filling stations are avoided!!!! Alot of motorists rush to these filling stations to have their tanks filled up before prices shoot up causing lots of traffic jams! Its DAMN irritating!!

  8. Allow the private sector to deal with procurement of fuel and all petroleum products after our economy is a Free market economy.Government is not good at running businesses but it should be let to the private sector who are an engine to any economic development as simple as that.

  9. That headline says a lot about the staff working for LT. They have not been to College. They have not even been to secondary school. Is this how the nation has gone to the dogs? Simple grammatical rules cant be applied?
    It is wrong for blaming ERB for fuel price adjustment-Energy Minister????? What the heck!

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading