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
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.