Opposition leader Hakainde Hichilema has charged that the principle reason why fuel pimp prices are very high in Zambia is because of corruption and too many middle men in the supply chain.
Commenting on the increase in fuel pump prices by average of 80 Ngwee, Mr Hichilema charged that the hike is a slap in the face of already struggling Zambians.
“As if the cost of living is not already high enough, PF comes in with another slap in the face of the citizenry, sending all of us reeling to the floor,” Mr Hichilema said.
“Fuel in Zambia is expensive basically because of three factors; the kwacha/dollar exchange rate which has deteriorated due to debt repayments. Secondly, we have a chain of middle men who have no business buying fuel, and thirdly are the exorbitant fees charged by Indeni which can be circumvented, if oil marketing companies were allowed to import a finished product.”
He added, “The Tazama pipeline has leakage problems that we have failed to maintain it, but you the people of Zambia are being exploited to attend to these avoidable charges.”
“How does petrol which costs K9.49 at wholesale end up K15.98 at the pump? Where does the K6.49 go to? The answer is simple; PF middle men, unnecessary fees and outright theft by a lot of people along the way to the pump price.”
He stated that other than transport costs, there is no other justifiable reason why fuel must be sold this expensive in Zambia apart from outright theft by the PF and its cohorts.
“This is not a joking matter any more fellow citizens. Zambia is in extraordinary circumstances, and extraordinary measures must be taken now and not tomorrow by all of us and those entrusted with the power to make decisions,” he said.
“Typically, our fuel has seven tax components by the time it lands at the pump i.e fuel terminal fee, marking fee, excise duty, dealer margin, ERB Fees, Strategic Reserve Fund and finally VAT which is not calculated at wholesale price but at the total price, after adding all the other taxes.”
He said, “This simply means there’s a double count here and this is the reason our price of fuel is very high. What do we then propose? For now, can PF scrap all the other taxes and allow Oil Marketing Companies to import fuel as a finished product from reliable and credible sources.”
“Here is what is happening [Base Price + Fuel Terminal Fee (Tax) + Marking Fee (Tax) + Excise Duty (Tax) + Transport + OMC Margin + Dealer Margin (Tax) + ERB Fees (Tax) + Strategic Reserves Fund (Tax)] then this subtotal is subjected to VAT at 16% (Tax).”
Mr. Hichilema said the UPND expected the PF to do was to reduce the pump price of fuel by not less than 4 Kwacha per litre.
This Under 5 lives in a theory world with no practical experience. He’s never been a ward chairperson.
His UPND worshipers still follow this cult leader.
Attack the theory, not the person, for a change.
And then PF member Johnstone Chikwanda will tell u that the govt is actually subsidizing the price of fuel. But shy impose taxes on something that u subsidize? U will never get an answer from Chikwanda or the powers that be.
The man has an auditor’s mind. This is good for business but dangerous for one’s route to statehouse. HH should be advised that the people holding this “(Where does the K6.49 go to?)” are the CORRUPT who can make him win or lose. Play your cards well you dull lot!
Come on HH….am not PF but please HH take time to read international news and see whats happening with the world’s economies…..finding faults and criticizing everything and blaming it on PF wont get you elected…..just like blaming PF for no rains….its easier said than done bwana Hakainde Hichilema….be smart and criticize accordingly otherwise i see 2021 as your retirement year from Politics
I think HH is the dullest politician in the world…..he is not even aware of whats happening around the world…..just dreaming of becoming the President of Zambia and hallucinating….this dullness scares the shiiiiit out of me…just how did he even acquire his wealth……now am starting to question his mental capacity…he looked like a clown when he was posing/acting for the cameras when he went off script with his meal donations…
While he may have a point, HH too often does not preach what he practices. This is hypocrisy !!
HH is one of the biggest suppliers of cattle & beef in Zambia. He has deliberately priced up the cost of buying cattle and meat on wholesale from his ranches, making it hard for big buyers that want to buy in large quantities on long term contracts, such as meat processing companies, butcheries, and supper markets.
This has led to beef in (i)butchers, (ii)supermarkets, (ii)takeaways, (iii) restaurants, (iv) hotels become more expensive for the average Zambian Consumer, especially the poor.
As one of the people who has invested in cattle ranching, I know what it ( costs to raise one single cattle). However, HH has often given inflated-breading-figures to justify his…
cont..
However, HH has often given inflated-breading-figures to justify his inflated wholesale prices.
Therefore, he pretends to care for Zambian with one hand while he is crewing the same people in their pockets with another hand.
HH lower your whole sale price and you will still be making massive profit margins from your cattle ranches. Just practice what you preach if you really love Zambia
— correction in the above comments. Meant to say !!!
Therefore, he pretends to care for Zambian with one hand while he is , screwing the same people in their pockets with another hand.
THe PANAMA thief is barking HAGAIN!
Wiyuwiyuwiyuwiyuwiyu
Chi double h nichikali imwe K4/litre?
I am salivating imwe already.
He made me daydreaming, I was like where could I go with a full
…tank. Wonder aimfully and come back home excited.
I feel like orgasmating right now.
Double h, is this how you managed to pull the legs of your sympathizers.
Double h is lying crook. Ulabeja munyama iwe.
Privatisation Thief yapping HAGAIN. Money laundering Thief and Tax evasion Thief.
its a scandal to blame the government for the fuel, the fuel increment is all over europe now reason iran have bombed some saudi arabian oil production plants its in the news in europe
But come 2021 their eyes will be opened when they realise their Emperor is walking naked without even a loin cloth to cover his oxtail!
UPND wake up!
It appears HH is the most intelligent Zambian who has solutions to all our problems. The cult leader. Entrusting a privatization thief with power will be worse than PF. Zambia currently does not have an alternative. Kambwili is another person that lucks wisdom.
Doesn’t what HH say here make sense? Why are you so bitter against this man if you are not one of those screwing us with these high prices?
If you showed your kitchen to your visitor and he store from you and you showed him your bedroom when he comes HAGAIN, we would call you MENTAL. HAZA STEAL-A HAGAIN.
Your excellency you can say that again but they won’t listen because they are ignorant thugs who live by violence a d cadreism. I had the Same problems dating zambian women apart from one white zambian who listened to me. My current European blond wife is very understanding and accepts when she is wrong. The pf could learn a lot from her
Defunct NEDCOZ/NECZAM Hatribes Dept of HAZALUZA HAGAIN!
Your excellency you can say that again but they won’t listen because they are ignorant thugs who live by violence a d cadreism. I had the Same problems dating zambian women apart from one white zambian who listened to me. My current European blond wife is very understanding and accepts when she is wrong. The pf could learn a lot from herx
Your excellency you can say that again but they won’t listen because they are ignorant thugs who live by violence a d cadreism. I had the Same problems dating zambian women apart from one white zambian who listened to me. My current European blond wife is very understanding and accepts when she is wrong. The pf could learn a lot from herxx
Clowns, jesters, buff00ns and f00ls. The oval headed twit who thinks he knows everything is at it again with no substance.
Ignorance among PF supporters is amazing or is it pretense!?. This simple arithmetic of calculating the components that make up the price of fuel to them is like rocket science. They think this is knowing it all. When people refuse to think, there is a wrong doing going on.
That’s why I have been saying that he will break the world record for being the longest serving opposition leader in the universe.
Tell them Bwana Liquidator General Mwene Mutapa Cayman Islander Panama Papers! What you forgot to propose is that Govt must come out of the fossil fuel business sector. Let it not be involved in the procurement process. We have so many players in the fossil fuel sector but all of them are compelled to uplift fuel from Indeni so there’s no competition. Why is Govt still sitting on the Wynter Kabimba Commission report? We want to know his findings. May be we can help fix this problem. As for our man unless he’s the one doing it then it becomes business for others it’s theft. Give him chance to sale Indeni you’ll wake up to find he’s the majority shareholder
@Ayatollah, that is a good one. Give him a chance to sale Indeni!!
My neighbours white wife hit on me last night while my wife was doing the shopping. What should I do please
Fuuck Another white Pigg since you are Used
This is not your fathers father’s village where people sleep with animals.
I am glad you keep showing us how HH thinks too just like his supporters! Please tell Prof. HANSONI to write this about your experience on his university letterhead to the UN. I am sure they will be interested. We are not. UNDER 5 thinking. Defunct NECZAM.
Sharon hh has been on hardtalk while lungu 4 years down the line is still dodging a mere press conference. Ati he is humble kanshi chikopo fye
I remember these lyrics very well sang by MCS in 2011! He came with a mantra « within 90 days ». He attack the cost of fuel under RB compared it to prices in Sadc and promised to cut out middlemen. When he came to power via « donchie » he reduced by decree pump prices and his own SG became a « middleman » for cheap fuel! The rest is history
HH, you have claimed that fuel in Zambia is expensive because of the PF are corrupt, please show us where the corruption is in the scenarios you have outlined in your article. Further, are all those tax components you have outlined above only appeared when PF came into power? Please be factual. HH, you are a very deceiving character who wants to pray on suspecting masses and here is why. You claim “How does petrol which costs K9.49 at wholesale end up K15.98 at the pump? Where does the K6.49 go to?” Fair enough, i thought the K6.49 has some tax component which every government collect in order to function. HH, you are on record of opposing ZESCO to sell electricity at Cost Reflective tariffs and in many instances, you have tried to cheat people that you will reduce electricity tariffs in…
HAZALUZA HAGAIN!
contd
HH, you are on record of opposing ZESCO to sell electricity at Cost Reflective tariffs and in many instances, you have tried to cheat people that you will reduce electricity tariffs in an event you formed government, the question that you need to answer is this, who will pay for the price difference because currently ZESCO produces electricity at a higher cost and sells to the retail at very low price we have been told. And going by your argument in fuel scenario, aren’t you contradicting yourself? If you are a genuine leader, please answer these simple questions instead of making and looking at everything from political instead of economical view point. Lastly, what is the sustainable solution that you proposing to the energy sector both fuel and electricity? Tell the nation your…
contd
Tell the nation your magic touch which people can analyze and make informed decisions if you are indeed the genius you claim to be.
Malinso why don’t we just cut out the middlemen?????? Whose interest are you serving by maintaining middlemen? – certainly not the ordinary Zambians. Elements of corruption are embedded in this lengthy process.
Malinso, simple my brother. How were mmd managing to run the fuel price cheaper than current when the world fuel price was once at their time higher during the Iraq war? How were the mmd keeping the price for electricity so low when the electricity even then and now was hydro and during mmd time the load shedding time was only 2 hours and also not country wide although the mines were working at their peak and using so much electricity. Thirdly how were the mmd keeping the price of mealimeal at around K40 compared to now. Fourthly how were mmd keeping the price of the USD at around K6 when you know most of the things in Zambia are dollar based because we import.??? The answer is simple my friend. Good, stable, smart policies and good smart people employed in strategic positions. To manage…
Exchange rate was favourable then…
We are now on the chorus by the time we get to bola naikosa it will be K30/L. JK what a prophesy
malinso,are u ok in your right of mind? can’t u c corruption? Please don’t pretend. Corruption is there. U don’t need a binoculars to see.You, just hate hh cz u are not on the same level.
Running a country ba hh is not theoretical but practical. These nonsensical theories you are throwing around don’t count in running a nation. It simply show how shallow your thinking is. You only sound intelligent to your fellow **
“…..and thirdly exorbitant fees charged by INDENI which can be circumvented if Oil Marketing Companies(OMC) were allowed to import a finished product.”
Its clear INDENI has adverse effect on the cost of fuel as a monopoly.Question is?Are governments allowed to operate monopolies without legal consequence? Yes especially when and/or if that particular monopoly enjoys economies of scale i.e be able to produce a product at a lower cost than the competitors.Here,its clear INDENI does not enjoy economies of scale as alleged by exorbitant fees charged.However,the suggestion by HH to allow OMC to directly import a finished product from ‘credible and reliable’ sources will not solve the problem either because of the penchant by OMCs to operating Oligopolies (cartels).So between the…
So between the two,which one is a necessary evil? I would settle for INDENI only if they streamline operations to attain some form of economies of scale, because currently a quick look at INDENI plant reveals a plant running at sub optimal and not at expected or normal capacity, than allowing a proliferation of oil cartels/syndicates run by OMCs.
Drone in Saudi Arabia = PF theft
In South Africa crude oil is off loaded from ships directly into refineries at the port for processing. In Zambia crude has to travel “an extra mile” in a pipeline to Ndola.
24 Sept 2019
Fuel price RSA $1.09/ litre
Zambia $1.2/litre
HH, please respond with corruption, theft and all manner of wild allegations designed to market yourself but achieving opposite results.
Go back to school……those fuel ships that dock in SA travel almost a 1/4 more the distance that ships to TZ have to travel…..so fuel should be more expensive in SA……
HaEconomics of Privatization Theft! They cannot reason with you @Junior jj! The main reason of HaHopposition is TRIBAL NOT ALTERNATIVE MANAGEMENT AND VISION!
The fuel levy has not been included in the formula as it was never removed from what I recollect. At indeni, there are thieves which must include PF cadres, who steal fuel with the connivance of indeni staff, a cost included as theft but not properly accounted for
A few months ago I told you PF will be increasing fuel prices……incidentally the increase happens when the corrupt thief lungu is out of town………what a slimy thieving coward.
.
The trouble with HH is that he taints everything with politics and he cannot separate his political ambitions.
He is simply not a reliable commentator on matters of national interest because we do not know the boundary between national interest and personal ego. He may seem to have a valid point but it would be folly to take him on his word.
As I keep saying, there is no difference between UPND and PF except for the trible baggage in the former.
18.8 Spaka, I quoted a date for the price comparison. Sometimes the price in RSA is higher than Zambia, other times lower. There is also the element of economies of scale which can get you a discounted price for the crude.
You probably need to go back to school, I mean a decent school, not Heconomics School.
Naimwee what economies of scale can PF get ?? Economies of looting maybe.
Fuel is more expensive in Zambia because of PF corrupt middle men. Period.
Will HH ever respond to calls to clarify the role he played in the privatization of Luanshya Mine, clearing the allegations that he undervalued the mine?
Why is it always easier to discuss the flaws of other people than one’s own?
Let him just clarify if there was corruption….or it was all decently done for goodness’ sake.
When lungu finally has the guts to hold a press conference , than iam sure HH will answer you…..
.
the biggest problem pf cadres are having in their bare uncovered skulls is that the subjects hh gives is far too high and complicated for them . failing to grasp anything they make the loudest noise. remember the empty vessels makes the loudest noise. one other reason their hands are not clean on corruption, theft and many other illegal things they are committing.well , today ck is not free because he reveals what they are doing. we want to appeal well meaning zambians to take not of this and use it one the voting day 2021 kuya bebele ba koswe.
Wish we could have more facts than feelings here!
The RSA government regulates wholesale margins and controls the retail price of petrol. South African petroleum prices are regulated, based on import parity price formulas. This means that the domestic price is influenced by supply and demand for petroleum products in international markets, combined with the rand/dollar exchange rate. This is not different from what is obtaining in Zambia with what ERB is doing.
The price difference between the two countries emanates from the following:
1) in RSA, there are four major crude oil refineries whereas Indeni is the only refinery in Zambia
2) in RSA, between 1994 and 2014 total refinery capacity moved from 563000 barrels per day to 703000 barrels per day whereas in Zambia, INDENI with a…
…semi-monopolistic status has an installed processing capacity of 25,000 barrels (one barrel equal 156 litres) of crude oil (co-mingled) per day,
3) INDENI plant is currently running at 65% of design annual throughput of 1.1 million tonnes based on 330 stream days of production.
4) in RSA, petroleum products are moved from refineries to approximately 200 depots, 4 600 service stations and 100 000 direct consumers who are mostly farmers. This handling capacity to a large extent helps buffer the price of the petrol and diesel for some considerable time unlike in Zambia which has less than 5 Depots of renown.
I therefore wish our leaders can stop politicking about the fuel price and put forth long-term measures which is like upgrading the INDENI refinery expanding storage capacity for…
… for either crude or finished product.
This fuel issue( the drone stuff in Saudi Arabia ) has been on BBC for a while and I don’t think it makes any sense to point at a local person, who has little or nothing to do with it, and blame the whole thing on him.
Secondly, yes there is certainly something that can be done to slightly reduce the cost of fuel i.e reducing the number of middle men, reducing taxes during processing and on the final product…
Thirdly, it is just prudent for one to clear their name first, which is also linked with shady dealings in the past, before declaring another suspect dirty. It should not be about who speaks louder but honestly coming out clean, it be PF or UPND. It is boring to and pure folly to sit with the same problem for eternity. There should be scrutiny of people ho want to lead the…
Astonishing! Or maybe not, that there are so many responding here without directing their narrative to the points HH makes. Whether he is right or wrong, when are you ever going to behave objectively and respond constructively on each point? Is it because you are so ignorant to do so and hence resort to personal attacks? That you are beneficiaries of the PF misappropriation of resources and typically want to defend the status quo at all despicable cost? Inability to articulate? Or all of the above?
I for one, (irrespective of what is going on globally) would agree with the point about too many middle men. It is a supply line for enrichment of PF cadres that have been awarded contracts for companies merely formed for the purpose of being in the chain.
Who is responsible for most of the debts, with the consequence of a large chunk of earnings going to servicing of the same? Why hasn’t there been meaningful action on alternative energy resources (solar, wind etc.) – hence the worsening load-shedding? Who has no proper policy on agriculture? All these things are interlinked – bad leadership and corruption, the hallmarks of this arrogant regime. Of course supplemented in the main by a weak civil society and a cohort of selfish corruption benefiting characters, some of whom abound on this forum.
Is it a wonder that we sinking further in this social and economic quagmire
A thief always see theft in everything whether good or bad. tell me when Akainde ever praised Government on anything. This is one reason we do not need useless opposition politics in Africa. We need one party participatory democracy with clear succession plan and strong institutions. Everyone will be contributing to the general growth of the country and not opposing everything as long as it comes from Government.
What’s HH has said is so logically spot on but one wonders why all this vent of unintelligent anger by Bemba and Nyanja bloggers here. It proves that the PF’s tribally bigoted spins against Tonga’s and the UPND has morphed into a movement Rwandanizing Zambia. This country is so tribally divided, something is bound to break soon!
The nearest comparable evidence of economies our brethren from Chipata, Chinsali, Kasama and Mansa have to economies are Nyasaland and Katanga, where there are actually none except stinking kleptomaniac shenanigans! No wonder they can’t understand HH.
N. eez Just advise His Excellency to order a reduction in the fuel prices to K8. 99/gal. After all he has declared a hunger disaster from State House at New Kasama without difficulty.
We are not learning about the fuel supply chain and all the bottlenecks surrounding it for the first time. HH has raised some good points, though obvious to all who have done civics before.
I have not voted for ECL before neither do I have plans to vote for HH in the next presidential elections. The point I am raising is that the integrity and decent character of our leadership is paramount if we are to EVER move forward. We can raise points but implementation should be without any personal interests.
Therefore, our focus for now should be on the integrity of our next and indeed all future leaders. It should be about what a leader or even you and I will contribute to the well being of our nation and not what we are going to get out of it. I am a Zambian, who really finds discussing…