Monday, February 26, 2024

Government should consider importing crude oil from Russia

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Copperbelt-based economist Chikabala Kaleta has said the Government should consider importing crude oil from Russia as a way of stabilizing fuel prices.

Local fuel pump prices have remained unstable in the last six months amid frequent price adjustments.

The Government through the Energy Regulation Board (ERB) has been revising fuel pump prices on a monthly basis.

The Energy Regulation Board on May 1st revised downwards the fuel pump prices by K2.35 per litre for Petrol, 58 ngwee per litre for Diesel and 56 ngwee per litre for Kerosene.

In an interview, Mr. Kaleta said the price of crude oil from Russia was going down because oil sanctions from the European Union amid the invasion of Ukraine.

He said importing cheaper crude oil from Russia would help lower the cost of commodities after the drop in the inflation rate.

“Government should consider importing crude oil from Russia. Russia is currently facing oil sanctions from the European Union, the United Kingdom, and the United States over its invasion of Ukraine, hence the need for the government to buy the oil from Russia at a lower price, this could help ease the country’s fuel price woes. We should consider importing crude oil from Russia at a low price because it is not sanctioned. Of all the sanctions, there are no sanctions against crude oil, so we can import crude oil from Russia at a lower price,” Mr. Kaleta said.

ERB on May 31 adjusted upwards the price of petrol by K0.80 per litre, pushing the price of the commodity to K24.95 while the price for diesel and kerosene remain unchanged.

“By doing so it will not only help those driving but also will help lower the cost of commodities especially that the continuous drop in inflation rate shows how greatly the economy will be revamped within a short period of time. Zambians should for now look deep into supporting and helping President Hakainde Hichilema for he has demonstrated how important it is to prioritise revamping an economy that was almost collapsing,” he said.

13 COMMENTS

  1. Russian oil is BLOOD OIL – tainted by the illegitimate invasion of Putin of Ukraine. Zambia must NEVER touch anything coming out of Putin’s Russia!

  2. Are you freaking kidding me? How are you going to pay for it and how are you going to transport it to Zambia? Russia has been cut off from SWIFT and the dollar, euro and sterling pound (bar very few exceptions). So how does this genius propose we will skirt around the said sanctions? Carry the Kwacha in duffel bags and convert to Rupees? And what will Russia then do with the Kwacha? The ‘economist’ perhaps doesn’t understand how sanctions work.
    He’s criticizing himself… first he says Russian oil has sanctions from Europe and the USA and then says we should buy it because it is not sanctioned? Wtf? I know he’s trying to play with words and trying to differentiate between ‘oil’ (implying processed?) and ‘crude oil’ (meaning unprocessed?)… the sanctions will still bite either…

  3. Wow. I cannot tell if you honestly thought this was a good idea, or if this article was simply another poor written attempt at clickbait.
    Either way, shame on you.

  4. How can they when overzealous hh decided to support ukraine. Hh is a very f00Iish man who will cost us everything in this country. He is inexperienced and should be impeached.

  5. WHy doesnt your father import it first? practice what you preach bro then perhaps when the GRZ sees that your own Father or Mother imported the oil from Russia at their own cost, could take interest and maybe consider it as you are suggesting and also start importing. But first, let You (Chakabala), your Mother or Father do that first pls.

  6. This man Chikabala Kaleta is a true ecnomists who merely looks at the numbers …he would sale his wife and daughters into prositution for two months just to balance the house bills. You might as well send Zambian Army soldiers to fight alongside Russian troops as you have zero understanding of geo-politics…I bet you he was discussing the contents of this article beforehand at a bar in CB with his drunk mates …then descided to publish this article.

  7. Well you have the right to say so but this is none starter,No one can even advise the president to attempt this route.

  8. I have never seen a dull economist as this one. What mode of payment will GRZ use when doing payments when the invaders have been cut from swift? So in his big head, the economist think Crude oil and oil are two different animals? Shame…! when they say an embargo on oil, it doesn’t matter whether its crude or oil.

  9. Really laughable…maybe he means Zambia should pay Russians via QIWI payment method (Russia’s answer to Paypal and SWIFT) for oil…this chap has not sat down and thought about how IMF will react to that especially that Zambia has pending issues with them…this chap needs to go back to uni and polish up on his critical analysis.

  10. How can I have my article published by Lusaka Times? I see even nursery School articles are now being given space.

  11. Except we don’t import crude oil anymore, our refinery is closed remember? We need finished products. Ba economist busy talking without a single bit of knowledge.

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