Thursday, February 22, 2024

Government says Drop in Fuel Prices shows UPND is on the right Track

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Chief Government Spokesperson, Chushi Kasanda has said that the reduction in fuel prices is a demonstration that the economic policies that the UPND Administration is implementing are on the right track.

Ms. Kasanda said that Government supports the decision by the Energy Regulation Board to subject the fuel prices to monthly reviews.

Ms. Kasanda said that this will enable the fuel consumers to benefit through reduced prices.

The Chief government spokesperson said that in the past any fuel reduction on the International market including the appreciation of the Kwacha, had no impact on the price of the commodity locally.

Ms. Kasanda who is also Information and Media Minister said that this is why Government is happy that the current appreciation of the Kwacha and the favourable price of oil on the international market have directly resulted in the reduction of fuel prices in the
country.

In a statement to release to the media, Ms. Kasanda said to avoid distortions of the past in the fuel pricing, Government will encourage the Energy Relations Board to continue with the measures it has put in place, where Fuel prices in the country are reflective of what is obtaining on the International market at a given time.

Meanwhile, the Bus and Taxi Owners Association of Zambia says the fuel pump price monthly review has the potential to create an unstable economic business environment due to unpredictable outcomes which is not good for business operations.

Association National Spokesperson Amis Daudi said that despite the review being welcomed, it makes it difficult to plan and schedule business activities accordingly especially the running of the transport business.

Reacting to the revised fuel pump prices by the Energy Regulation Board yesterday where petrol has been reduced by K1.32 ngwee per liter and diesel at K1.22 ngwee per liter, Mr. Daudi told Phoenix News that it is premature to state if bus fares will be reduced as the changes in the petroleum products are very minimal.

Mr. Daudi added that the other reason why it is difficult to adjust downward bus fares is that diesel and petrol are in the regulated sphere where the government can determine whether prices should go up or come down.

And Socialist Party President Fred M’membe has argued that the reduced fuel pump price is meaningless because last month’s hike was more than the slightly over K1 reduction.

Speaking when he featured on Tuesday’s edition of the Let the People Talk program, Dr. M’membe said that the downward adjustment of petrol and diesel will not have any impact on Zambians because it is minimal and expects prices to be hiked much higher in this month’s review.

30 COMMENTS

  1. My sister don’t change your stand…. first you told us you had removed subsidies. We only hope it’s not a campaign gimmick for the Kabwata elections. Just hope.

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  2. So you were on the wrong track when you increased? Let’s see what happens as we go, we don’t want ati we increased because of mfyo mfyo mfyo. BMW and nyudoni clearly don’t know what they are doing.

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  3. Did PF set the bar this low? You increase the price of fuel by K 4 and a month later reduce it by K 1 and you start patting yourself on the back for such a huge achievement . My foot, UPND is indeed a failed project.

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  4. Another succumbing to pressure just to hoodwink the people of Kabwata for the upcoming by-election slated for 3rd February 2022. The net effect of this marginal reduction is almost zero. There will be no change in commodity prices and bus fares so madam Kasanda people won’t feel the positive impact for the reduction.

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  5. Very much on the right track this UPND government, Different from the failed PF project we kicked out. Even to have a meeting as PF MPs, they are now failing, the way they failed in everything in government is the way they are failing everything outside government, how can one call a fly over bridge ati development, such things like fly over bridges in developed countries are even officially opened by mere councilors, not even a mayor

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  6. The incompetent UPND government and its muddled thinking at work! The desire to appear to be delivering for the Zambian people in what is termed the ‘post promise pre-delivery phase’ has led to celebrations of any positive news. This was predictable as the VP proudly said ‘we are increasingly the prices so that we can reduce them’. #New Yawn indeed

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  7. If we pay subsidy to reduce and reduce fuel price same strategy as pf but if we were not paying subsidy and reducing price then we are on right truck. Because if we pay for it in tax form and u say u reduced same difference

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  8. So the pump price has been reduced! What do you expect us to do? Celebrate? Will bus fares come down? Will the general food prices come down? Madàm these are the questions you need to answer. If the answer is no, then kuwayawaya fye.

  9. More money in peoples pockets was the promise from PF in 2011, come 2021 zero delivery for ten years, lamentable failure, the beauty is that the Zambian people responded, by sending the empty promise back to sender on August 12. A serious government is now in place and one can clearly see the intent

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  10. Zambians are solidly behind UPND, we suffered more than enough in 10 years of PF . Economy broken, rule of law broken, country totally indebted, even football, we last won major tournaments in other regimes and nothing in the ubomba mwibala alya mwibala regime. The fuel pricing will stabilize once the UPND permanently stabilizes the country, the damage was just too much

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  11. I think it is too early to start patting yourselves on the back as the price on the international markets is not under our control. I can see prices going up due the Russia/Ukrainian issue, how then are you going to explain the upward pricing of oil which will be beyond your control? Our only hope is an improvement in strengthening of the Kwacha and so far the immediate gains have been utilised, hopefully it will strengthen further when the IMF deal is concluded, otherwise we are in chatty waters.

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  12. I don’t see the Kwacha strengthening much on account that the SDRs are already being utilised to pay pensions and for social protection etc (Dr Musokotwane). The kwacha has already lost against major currencies so I cannot see how the IMF deal is going to make significant impact

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  13. What about a scenario where the Bus fares stay the same but fuel is cheaper. Do the bus operators pay back the gains? We are too simple in thinking, Your beef should be with the board that sets bus fares. Consumers need to be protected from retailers and businesses. Government has given the bus operators some concessions, they ball. Come on now.

  14. Fuel going down should be a long-term market startergy The change must reflect dynamics at play as oil and fuel prices are subject to geopolitical shocks The rule is always to sustain prices and achieve stability you only adjust when there are events or the economic situation global drastically change up or down by maybe quarterly giving basis and reasoning.You need a target range also below some global average of 1 dollar per litre of petrol and play margin reserve variations to post losses and gains on Bulk procurements into Stratergic refineries and reserves Current procurement methodology has positive inherent risks to the sector which is strong Generally prices move with market dynamics In developed countries prices on average are higher than the atleast developed Zambia Meaning…

  15. Lies have short legs. I ve noticed two interesting things in the current government. 1. Crude oil increasing on the global market and the kwacha tumbling daily, they announce reduction in fuel prices in Zed ?? 2. Kwacha tumbling and commodity prices skyrocketing and boom ? they announce reduction in inflation, ine kudabwa??. Have economic fundamentals changed with the nyudoni? Let me learn .

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  16. One tumbuka man on bicycle came to Lusaka to congratulate HH on his victory over ECL his brother, and now the same great man the Tumbuka guy came to pay homage to has said the Tumbuka people do not need a bituminous road in their area because, Tumbuka’s can not pay road toll fees for the road.
    What a disappointment for our friends in the eastern province.
    This government is the worst of all governments we have ever seen in Zambia

  17. Sometimes even if your post is to speak, it’s better to keep quiet on some issue.. UPND has direction. Even ministers don’t understand

  18. The contract size could be a100 barrels Then you will have contracts either for physical delivery or exchange or Financial If you have 100 barrels futures positions the minimum price change could be around .01 per barrel That is slot of money looking at the future prices into June and Dece deliveries The price changes by -0.05 In Namibia pump price is basically a $1 target but the stability and exchange rates including the proximity to effecient market delivery makes it cheaper effectively Then the methods in procurement and delivery

  19. This Minister is behaving like a cadre. These are technical matters. My advice for the next time is to stay shuttered. So what will she say when the next adjustment goes upwards. Ubupuba te buntu.

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