President Hakainde Hichilema has put on high alert all line ministries and ministers to ensure strategies are in place to rapidly respond to any challenges that Zambia may face arising from the Russia-Ukraine conflict.
Presidential Spokesperson Anthony Bwalya has said that the President and the whole administration are observing with keen interest the possible ripple effects the tension in Ukraine could have on key global commodity prices such as oil and fertilizer because commodities play a significant role in positioning the Zambian economy.
Mr. Bwalya said that the country’s ability to import cheap oil remains critical in ensuring general economic costs associated with the use of various forms of fuel are kept at an affordable minimum for citizens.
Mr. Bwalya noted that pump prices of fuel might go up due to the Ukraine conflict and that government will continue to take active steps aimed at lowering the cost of living as already seen by the over 2-hundred percent positive performance of the Kwacha against the U.S. Dollar over the past 6 months, with inflation down from 24 percent to 14 over the same period.
Below is the full statement
The President and the whole administration are observing with keen interest the possible ripple effects the tensions in Ukraine could have on key global commodity prices such as oil and fertilizer , because both play such a significant role in the positioning of the Zambian economy.
It is important to note, that our ability to import cheap oil into the country remains utterly critical in ensuring that general economic costs associated with the use of various forms of fuel are kept at an affordable minimum for our citizens.
It must further be noted, that a disruption to the global fertilizer supply chain has the potential to adversely affect agriculture production for the 2022/23 farming season if suppliers do not have sufficient buffer stocks to meet the demands of the forthcoming farming season.
The President has, therefore, put on high alert all line ministries and ministers to ensure that strategies are in place to rapidly anticipate and appropriately respond to these challenges, should they arise, and mitigate them accordingly.
The administration will continue to take active steps aimed at lowering the cost of living as already seen by the over 200% positive performance of the Kwacha against the Dollar over the past 6 months, with inflation down from 24% to 14% over the same period; while basic salaries are up by 12% and another 13% improvement in the tax exempt amount for lower income earners.
Issued: Anthony Bwalya
Presidential Spokesperson
28 February 2022
There you are, using Russia-Ukraine as an excuse.
New dark government would use any opportunity associated with increase of commodities to fool Zambians
Useless boy this one. He talks too much but has no clue. He was recently saying that they only criticised the size of our travel delegations and not the frequency in support of his bosses irrelevant travelling. Let the president travel to Ukraine to sort out the fuel since he loved flying
Just increase. With or without Ukraine we knew you were going to increase. We’re used to be treated like little children… more money in the pocket, 14hrs Kwacha five to a dollar.
You have just failed to run this country
The press team needs a total shake up
I don’t buy this story at all. What does Zambia import, directly or indirectly from Russia? Sure, Russian companies have been sanctioned and cannot conduct international business.
Russian oil and gas has survived ALL sanctions because Europe is highly dependent on those.
Furthermore, we get our oil from Saudi Arabia, bearing in mind that Russian oil will CONTINUE to flow.
It was a matter of time before oil went up again, since they are now tallying the price to international markets. Sidenote, don’t we have more than enough stock for 6months?
How ?? We don’t procure petroleum from any of the countries which are at war…that’s so lame looking for who to blame.
#5 Chiza Chirwa… he’s forgetting that the increase was projected sometimes back. I’m they sat together and decided that the only way to avoid a backlash from the public was to use the current situation in Europe before increase is announced. Twalibelela.
You over increased the petroleum to make it cost reflective; you brought it down by less than a Kwacha to cushion the impact of increment; you want to hike the energy again one week into Russo-Ukranian war. If the war takes one year, the fuel price will even be extremely high!
If PF was Chipantepante, am yet to presume what UPND is.
Thank you. When are we going to have a ‘phone in ‘ program with the President himself like last time?
This Presidential Aide is behaving like he is talking to the kids. The people of Zambia know that prices of commodities can increase any time during the reign of upnd and not because of the Russia-Ukrean conflict.
Just because I have used UPND, my comment above warranted a moderation.
@Chiza Chirwa…… Russia is the second major exporter of crude oil
kikikikikikiki Chipante pante Government looking for any excuse to justify their failures….now its Ukraine….switch from COVID impact….Lies have short legs and in order to maintain lies you have to keep on lying
@11, I know it is! But we don’t get any oil from Russia! Heck, we don’t even get oil from Angola our neighbouring country.
We should have enough stock for half a year, and any price increase is for oil not yet harvested. There are tankers on their way to deliver oil right now with lower prices.
If there are to be price changes, it won’t be any time soon. Our government is simply looking for an excuse here.
@7, you are exactly right. Now this lends credence to the claim that they reduced simply for the by-election in Kabwata.
@8, that’s never going to happen, I fear HH, like Lungu, will shun media conferences, there are too many things that he can’t answer on account of some falsehoods on the party’s part.
I demand DNA test between HH and Anthony Bwalya.
Anthony’s mother is hiding something.
ERB have already issued a notice to that effect. Looking around at our political parties, I feel sorry for myself because they all look like lost liars…. lost because they are not even able to cover their tracks…. nothing to choose from. The guy in State House gave the impression of being a super human and people believed him because of the few coins he has. At least The Former Guy was forthright by admitting that he had no vision at all.
Old news! Fuel has already been increased. Erb has announced new prices and some filling stations have even stopped selling so that they can benefit after midnight with the stocks they have.
Russia is the world’s second-largest exporter and producer of crude oil. Russian crude oil exports account for 11% of world crude oil exports. With the sanctions, global crude oil supply would fall, thereby pushing prices beyond $110 per barrel. Also, Russia has the largest reserves of natural gas in the world. A large portion of this shipment passes through Ukraine, which collects transit fees, into Europe. So if large economies in EU are affected, don’t you see the risk of African countries being impacted? If the global price of oil goes up to $110, it will impact ZAMBIA regardless of where you purchase it. It’s being shallow-minded to argue that because Zambia doesn’t buy oil directly from Russia, then it’s okay, we cant expect prices to go up. Even if the price was forecasted…
It’s being shallow-minded to argue that because Zambia doesn’t buy oil directly from Russia, then it’s okay, we cant expect prices to go up. Even if the price was forecasted to go up, the point here is that they will go up more than what was forecasted. The government is just being transparent. Russia is the world’s second-largest exporter and producer of crude oil. With the sanctions, global crude oil supply would fall, thereby pushing prices beyond $110 per barrel. Also, Russia has the largest reserves of natural gas in the world. A large portion of this shipment passes through Ukraine, into Europe. So if large economies in the EU are affected, don’t you see the risk of African countries being impacted? If the global price of oil goes up to $110, it will impact ZAMBIA regardless…
BA LT , busy as usual with their stupid moderation. suckers.
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Those saying we don’t get any oil from Russia , which supplies 40% of European fuel ……….
Must have surely heard of supply and demand……..no ???
If you have not……….
The demand for fuel increases everyday on the world market…….but the supply side has lost a major player, Russia
What does that do to prices ???
At Spaka AKA that other guy who I won’t mention. Russian oil has NOT been sanctioned at all, they have left oil and gas free since they highly depend on those.
There is no breaks in Russian production of energy products and there is no shortage of supply, if there are any price deviations, they are but minor.
Additionally, ERB has already increased the price. Whats your comment on that?
LT is busy moderating,
But let me quickly say, its appalling how some people can not grasp the connection, If Russia fells off from Global supply of crude oil, obviously, that will lead to increase in crude prices on global market. Which basically means, wherever you purchase your oil, you will buy it at global price, and it will be expensive for you, which will lead to an increase of oil in Zambia. Even if there was forecast for an increase in oil, what this means now, is that prices rises more than was forecasted. UPND is being transparent to warn you, the impact should be anticipated, it’s a RISK, which means something that could happen in near future.
@General Kanene, my good sir, please read about the sanctions that have been dished against Russia, oil hasn’t been touched.
Production of oil in Russia is ongoing at the same rate.
Your scenario assumes that Russian oil is completely out of the box and this will lead other suppliers increasing the price or indeed demand increasing.
This current price volatility is negligible at best and doesn’t warrant any increase in pump price. And supposed you are right, is it then reasonable to increase the price of Zambian oil today like it has happened?
So only Zambia in our region is affected by the war in Europe? It’s not that people are failing to grasp what’s going on…. GRZ is just using this as a scapegoat. Tanzania, Malawi, Namibia, Botswana, Zimbabwe etc are not affected by this war except MIGHTY ZAMBIA?
@ Chiza Chirwa,
No one is planning to “to increase the price of Zambian oil today”, and what the government is saying is “tension in Ukraine could have on key global commodity prices such as oil “, therefore, they are mitigating possible risk. For you to say “This current price volatility is negligible”, and live with that is being short-sighted in my oppinion. Russia is the world’s second-largest exporter and producer of crude oil. Its crude oil exports account for 11% of world crude oil exports. I disagree with your assumption that despite the sanctions, it will be exporting without impact.
#19Â Â Chiza ChirwaÂ
February 28, 2022 At 7:51 pm
“At Spaka AKA that other guy who I won’t mention. Russian oil has NOT been sanctioned at all, they have left oil and…..”
A chirwa……..
Russia has $600 billions in reserves…….
They are anticipated to start punishing the Europeans by restricting oil supplies and diverting supplies to China…….
Even if the Europeans have not sanctioned russian oil, it is the Russians who will turn the screws………
I dont know why you should even be surprised that fuel price is going up …rising geopolitical tensions between Russia and Ukraine and in the Middle East are stoking supply fears.
BMW aka “Bally Muntu Wabufi”!
@23, “no one is planning to increase the price of fuel today…” LOL, just leaving a reminder here.
Correction @29.
BUNCH OF 1D10t*s on here
WHO BELIEVE ZAMBIA CONTROLS THE WORLD OIL PRICE
REALLY PATHETIC
Useless govt.No plan for the country.Bantustan thought HH was a savior.Running a country is not easy.please go and get our children in Ukraine.They are being denied to board buses coz of color (black).Can u imagine being denied coz u’re black.I now support Putin for that .
#33,34 – , @Chiza Chirwa,
I still stand by my statement which is based on facts and reality. Our discussion here is regarding the IMPACT OF UKRAINE-RUSSIA CONFLICT ON FUEL PRICES IN ZAMBIA, that is the theme and context, The current ERB announced increases are DUE to ” rise in international prices of petrol and diesel recorded throughout the month of January into February 2022″. so what I am, and other people who are up to date, are saying is that the impact of UKRAINE-RUSSIA is yet to come, and will have impact on Zambia, and we can expect further increase in prices. SO TO SAY THAT, GRZ is LYING is irresponsible, UKRAINE-RUSSIA CONFLICT will have global impact.You are better than this Mr.Chirwa.
THE LAWS OF SUPPLY AND DEMAND HAVE A RIPPLE EFFECT REGARDLESS OF WHERE YOU IMPORT YOUR PRODUCTS FROM
THE ILLITERACY IS SO ALARMING.
Mikusita@38
The illiteracy is not alarming, you are just missing the point.
If supply and production of Russian crude is excluded from the sanctions and supply is just like before, how will this affect the law of demand and supply?
Neither demand or supply has changed. That’s the point being discussed.