Fuel prices remains unchanged despite coming in of cheap oil from Saudi Arabia – Nkhuwa

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Government says the fuel price remains unchanged despite the importation of cheap fuel from Saudi Arabia.

Minister of Energy Mathews Nkhuwa said despite the arrival of the commodity from the Arabian kingdom, it will not result in the reduction of fuel pump price in the country.

Mr. Nkhuwa explained that the K 20 million fuel consignment coming from Saudi Arabia is far much less because the country uses one billion kwacha on fuel per month.

ZANIS reports the Energy minister to have disclosed during an interview today that the essential commodity from Saudi Arabia will get on the market as it is already refined.

“This consignment will not see a reduction in the pump price its far much less.

“The country uses one billion kwacha worth of fuel per month so this K 20 Million is not adequate but may be in the long run it may result in the reduction of the pump price.

“The fuel will not go through Indeni Oil Refinery because it’s a finished product so it can go straight to the filling station,” he said.

Mr. Nkhuwa further explained that the fuel comprise Petrol and Diesel, adding that it will take some time for the whole consignment to reach the country.

The ship carrying fuel from Saudi Arabia will dock at the port of Dar es salaam tomorrow Wednesday August 1st , 2018 after which pumping fuel from the ship will start on 10th August.

The commodity will then be pumped into the Zambian storage tanks in Tanzania and later on transported to Zambia using the trucks.

The importation of cheap oil from Saudi Arabia is under a government-to-government oil deal.

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25 COMMENTS

    • The importation of cheap oil from Saudi Arabia is under a government-to-government oil deal.
      Someone went to court over these ‘government to government oil deals.’

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    • This is PURE BOZA and PF propaganda – Nkhuwa is lying and dont even believe this fake news. There is no cheap Oil Saudi Arabia and if there is then they need to prove it. PF is the dirtiest of all parties and greatest liar!

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    • only the importers will benefit. not the consumers. So the middle men will sell at a higher profit. You can guess who is involved in this arrangement.

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  1. Incoherent policies is the biggest problem with PF Government. Some few years ago, we were informed that petroleum prices in Zambia will be determined through the Cost-Plus Pricing Model (CPM). This model has been in effect since January 2008, replacing the Import Parity Pricing Model discontinued following concerns raised by stakeholders. The CPM is used to determine prices for each cargo and provides for longer intervals of price stability. It takes into account all costs associated with the purchase of the feedstock. It has nothing to do with available stock at a given time. Just when was fuel pricing policy changed, Bwana Minister???????

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    • This doesn’t add up if this cheap already refined fuel is going straight to the pump at the filling station what are you going to with all that profit..stop telling lies. why is he measuring fuel using currency? Why can he say we are importing X litres for X amount.

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    • Agreed, the policies are not working for the people whom they are intended for. What’s the point of importing cheaper oil if it has no benefits to the common man? It really does not make any sense at all.

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  2. I had had bumped into the Dr. from Namwala after doing my sanitary duties at UTH. I met him in the lobby where the Restaurant is. “Hey Dr.!” I exclaimed. “Hey, Madam,” he politely greeted me. I have a troubling question that has kept me sleepless in the past few days,” I told him. “Bring it on!” he said, while smiling! A very close friend of mine at UNZA told me that this Prof. gave him “Cs” on all his work until he was troubled because he sensed it was a “Namwala thing” since his name could easily be perceived as a “thief,” there! So he finally decided to confront the Prof. “My father was a ‘thief’ but my mother played for Monze Sallows Netball Club,” he told him! He was amused and they exchanged a few words in the language the mother had taught him! His grades,…

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  3. miraculously, went up! The doctor laughed so hard that he almost choked! He went away without saying a thing, just shaking his head, smiling!

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  4. The agreement was made two years ago (May 2016) What was going on in between? Then you order a small consignment and say price remains the same because of the quantity. How much is it being sold on for? For how long will these ‘orders’ be sustained and for what future quantities? Who is buying it from government?
    There are, as usual, so many unanswered questions with this regime’s dealings. Nothing is ever straight forward.

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    • Well we have the answer as to why now! You decide to import from a country which is outside the continent when you have neighbouring countries who have the commodity. Govt – Govt so not a PPP then…

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  5. ok make me understand this ,you import 20 million worth of cheap fuel .y your statements the fuel cost lest than 5 kwacha per liter .And then you go on to say it will not make a different because its too little for what we consume ?Firstly when oil marketing companies sell that cheap fuel there will be astronomical profits on that consignment.What you are then trying to tell us is the oil marketing companies will be the only ones getting benefits from your much talked about EL cheap fuel?The way these politicians take us for fools is just depressing …

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  6. The journey of a thousand miles begins with a single step. I’m sure next time they will buy fuel worth K500m,another time fuel worth K900m until they are able to buy even for K1.5bn.In no time we will start buying cheap fuel from the Arabian Kingdom. Kudos kudos kudos to the hardworking PF government

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  7. It is as if we import our fuel from another planet. How can it be that ordinary diesel is more expensive than low sulfur at 50ppm in neighboring countries, for example. Is this country on auto pilot of is there a legion of sharks just biting chunks out of a dying corpse? What the fcuk is really going on guys!??

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  8. Lairs for real why announce then if, this does not effect change to the people.
    Can we be serious as a nation, am sure the gullible are celebrating !of course being lead by the few benefactors.

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  9. Even if fuel lands here at K1 per litre. The numerous taxes will eventually make it cost K15 per litre. If anything cost of fuel is likely to go up soon. Watch this space.

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