
Government has castigated Patriotic Front (PF) leader Michael Sata for suggesting that the recent 15 percent fuel hike is aimed at subsiding thieves that are involved in oil procurement.
Chief government Spokesperson Lt. Gen. Ronnie Shikapwasha says the statement by the PF leader is untrue, highly irresponsible and provocative.
Lt. Gen Shikapwasha adds that the Mr. Sata’s Statement is only meant to mislead Zambians and promote hatred against President Banda.
In a statement issued to ZANIS in Lusaka last evening, Lieutenant General Shikapwasha explained that the increase in fuel prices has not vindicated Mr. Sata from anything because he still remains an insensitive, hypocritical and manipulative politician who can say anything to gain political mileage.
Lt Gen Shikapwasha said as a government, the regulation of fuel is solely managed by the Energy Regulation Board (ERB) and not as insinuated by Mr. Sata.
He said having been a member of Cabinet in 1998 when ERB Act Cap 436 was enacted, Mr. Sata is aware that ERB is responsible for regulating fuel prices.
He explained that the nation should know that the last fuel prices were reviewed on 22nd December 2008 when petroleum products pump prices were reduced by an average of 24 percent.
Gen Shikapwasha added that this was on account of the dramatic decline in international oil prices and favourable exchange rate of the kwacha against the US dollar.
He noted that since December 2008 both the average international oil prices and cost of feedstock cargoes have gone up significantly as much as 72% while the average international oil prices have increased by an average of 110% over the period February 2009-January 2010.
“Going by the above stated figures, price increases would have averaged 32% as opposed to 15% as announced by ERB on 12th January 2010,” explained Gen Shikapwasha.
Gen Shikapwasha who is also Information and Broadcasting Minister stated that to cushion the economy, the government subsidised the high costs of fuel so as to make it affordable, especially in the context of the global economic recession that characterized the global economy in 2009.
He pointed out that as the global economy is slowly moving out of the recession, the demand for petroleum products is beginning to increase, the international prices of oil have also began to rise.
He disclosed that this is why government cannot continue to subsidise the pump prices hence the 15% average increase instead of the 32% increase that is warranted by the economic fundamentals.
Lt. Gen. Shikapwasha has since expressed sadness at Mr. Sata’s remarks adding that they do not add value to raising a well-informed society.
On 12th January 2010 the Energy Regulation Board announced an increase in fuel pump prices a move that has attracted attention from various sectors of the economy in the country.
Mr. Sata is quoted in yesterday’s edition of the Post Newspaper a having said that he has been vindicated over recent revelations that President Banda would hike fuel prices and that Zambians will now subsidise the President’s corruption.
ZANIS