Tuesday, July 16, 2024

Multinational Oil Marketing Companies want a higher increase in fuel prices

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Radio Phoenix reports that some Multinational Oil Marketing Companies OMC’s are not happy with the recently announced adjusted fuel pump prices instead of opting for slightly higher prices than those settled for by the government through the Energy Regulations Board-ERB-.

The price of petrol was recently hiked from K17.62 tO K21.16 while that of diesel was adjusted upward from K15.59 to K20.15, prices the OMC’s do not agree with.

According to OMC’s association president Kafula Mubanga, while the removal of subsidies was welcome, most OMC’s are of the view that the hike should have been slightly more and has attributed the current shortage in some parts of the country to some companies withholding stock to solicit government for a higher price increase in fuel.

Dr. Mubanga has also cited transportation challenges from ports of discharge due to the rains as part of the reason for the shortage of fuel but has assured stakeholders supply will stabilize during the course of the week once the OMC’s realize that the government considered many factors including impact on the end-user, business, and regional pricing among others to effect the current prices.

He has since reminded OMC’s that they have a mandate, as much as a for-profit, to support the government of the day by responding positively to the supply chain process and ensure that there is enough stock in the country although he was quick to mention that Zambia’s fuel pump prices remain relatively lower in the region as most countries are currently at k22 plus per liter of petrol.

A random check by Phoenix News in Kitwe between yesterday and this morning found that all the 5 operational filling stations in the town center had no petrol prompting complaints from taxi drivers who have lost business due to the shortage of the commodity.

Zambia Chamber of Mines Chief Executive Officer Sokwani Chilembo
Zambia Chamber of Mines Chief Executive Officer Sokwani Chilembo

Meanwhile, the Zambia Chamber of Mines has said that the upward adjustment in fuel pump prices will not have a negative effect on the productivity of the country’s mining sector and is confident that sector players will adjust accordingly as the favorable 2022 mining fiscal regime mitigates the impact.

Chamber Chief Executive Officer Sokwani Chilembo said that it is the unaffordable cost of capital in the past was a major limiting factor against ramping up production in the mining sector, a policy which has since changed under the 2022 national budget with the government restructuring the deductibility of mineral royalties.

Mr. Chilembo says the mining sector has no option but to adjust to the new fuel prices while planning for the impending increase in the cost of electricity both of which he says will be factors that can be contained with a favorable mining fiscal regime to take effect on January 1st, 2022.

He adds that the mining sector has been keeping tabs on the escalating price of crude oil on the international market and has been expecting prices adjustments as is the case currently, where the chamber and its members are keeping a close eye on developments regarding impending adjustments to electricity.

The Energy Regulation Board (ERB) recently announced upward adjustments in fuel prices, pending removal of subsidies on the commodity while another price structure review is imminent on electricity, both essential for the much needed ramped up copper production that is currently on a negative trajectory.

10 COMMENTS

  1. No one is hoarding stock. That can be very easily verified.
    Please do not use lies to try and justify a bad situation. There is genuinely no stock in the country.
    And to say OMCs want higher prices is also ridiculous. I thought such cheap propaganda would die with PF, but I see they have spilled over.

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  2. I have seen more than 50 tankers for youth empowerment coming into the country last week. Government can make use of them to distribute fuel to all parts,of the country if OMC are failing.

  3. Continue increasing the price. I support the increase because my oil businesses are now flourishing and the disgruntled youth who thought pf would suffer are actually the ones suffering

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  4. Ch!kkala Kafula mwisamwa… don’t abuse a gift. HH give you K4 ati yachepa… nyonyonyo.
    We can unleash ACC on you idyots!!

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  5. @Mr.M
    Please present your argument with some facts. How are you so certain the OMCs are not withholding fuel to get their way?

  6. But why are we surprised? When you do the same thing and expect different results, the outcome will always be political. Political in the sense that those that know, will use it as a way to hoodwink and force an agenda that could be interpreted in so many different ways. In other words, bring about confusion and the thief will steal from you with your eyes open wide.

  7. The actual price increase is 23 kwacha per litres. OMC is just informing the general public that you are yet to see the worst.

    It’s unfortunate the s@t@n1st is quiet about this.

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  8. I am even spending more on my children’s Christmas presents this year, because the fuel price increase means I have made more profit. Merry xmas

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