The Energy Regulations Board (ERB) has refuted claims that government has been subsidizing fuel.
ERB Chairperson Reynolds Bowa disclosed that following the increase of fuel prices on the international market in September last year, ERB used the strategic reserve fund to support price stabilization in the country.
Mr Bowa explained that to avoid the price shock, a decision was made that the cost of transporting petroleum products in Zambia would be cushioned by the use of the strategic reserve fund.
He was responding to reports by some sections of the media that government has been subsidizing fuel, hence the steady price flow.
He stated the purpose of the reserve fund is to support the development of the petroleum industry in the country.
“This use the of the strategic reserve fund is an authorized use of the fund and is one of the purposes for which the fund was created and does not in any way constitute a subsidy,” Mr Bowa states.
The ERB Chairperson further clarified that the fund resides in the restricted coffers in the Ministry of Finance and National Planning, and are accessed by the Board after justifying the use.
Prior to occasional shortages of fuel in the country in 2005, Cabinet at the time decided to create a strategic reserve fund. For every purchase of a litre of fuel by consumers, a deduction of K1.50 is channeled to the strategic reserve fund for use when need arises.
Next Kawana will say something different. These people believe in convincing people rather than telling the truth.
We all know that the PF introduced the price stabilization fund which is a levy paid OMCs. We were wondering what you were doing with the money that time you used to review pump prices every month. We had suspected that you were stealing it. It’s good that you began to use the fund for its purpose. What you now must explain is what has changed? And did it have to take instructions from HH? Prices stabilized after his comments on the matter. Can you do your job correi?
Where is the free marketing strategy which the President has been talking about?
What happens when this reserve money runs out?
Same difference – subsidy
Playing with words. Ba kolwe think we are children.
Not same difference. A subsidy is a mainly protectionist policy to protect local business from foreign (unfair) competition and greatly frowned upon by the WTO. A strategic reserve is a security policy to be drawn on in times of peril or uncertainty.PF was subsidizing consumption for lazy buffoons like DejaFOOOOL
You have just changed the name from subsidies to strategic fund you headless chickens. I curse the people that voted this government into office.
The Strategic Reserve Fund is a form of fuel levy. It is still a subsidy when it is given back to fuel consumers to stabilise (or reduce) prices.
ERB must reveal publicly how much of that Fund they have consumed. Government MUST also say how much, since 2005, is in the coffer. That is public Fund needing transparency in keeping it and in its usage. Tell us how much is remaining (or depleted).
That’s like saying hh is not a liar..
So how much of “the strategic reserve fund” is left? We need the Post Newspaper again. They were going to tell us.
A number of people said it here on LT that the UPND Govt is secretly subsidising fuel because the figures were not making sense considering the prevailing international oil prices over the past 6 months. But as usual the resident praise singer went on the defence of incompetent HH and useless UPND insulting everyone, their parents and sundry. Now the chickens have come to roost…I wonder if we could use the newly passed ATI law to compel these thieves to publicly how much was in the reserve fund as of December 2021 and how much is remaining as of December 2023
Apa they afraid of the IMF so they have to mask the subsidy with some terminology… trapped between the Zambians and the IMF so goes the old saying.
It’s not subsidizing. It’s just getting money from strategic fuel reserves to pay for the transportation costs. This man should be schooled on what subsidizing is. He has practically made a fool of himself in public.