GOVERNMENT has increased customs duty on fuel from five to 25 per cent to discourage oil marketing companies (OMCs) from importing finished petroleum products.
The move is aimed at saving TAZAMA Pipeline Limited and Indeni Petroleum Refinery from collapse.
Deputy Minister for Energy and Water Development, Lameck Chibombamilimo, said this in a statement issued in Lusaka yesterday.
“On the issue of TAZAMA and Indeni, the Minister of Finance and National Planning issued a statutory instrument increasing customs duty on fuel from five per cent to 25 per cent. This increase is from December 26, 2008,” Mr Chibombamilimo said.
“In view of this and the recent fuel price reduction, OMCs will now have to buy from TAZAMA as imported fuel will not compete with that produced from Indeni,” Mr Chibombamilimo said.
And in an interview, Mr Chibombamilimo called on Minister of Finance and National Planning, Dr Situmbeko Musokotwane, to increase the Ministry of Energy and Water Development budgetary allocation from the proposed K84 billion to K800 billion this year.
He said this was vital because the Ministry of Energy and Water Development had the potential to generate revenue and provide an alternative to the mines which were facing difficulties as a result of the global economic recession.
“I know that we will open more mines but the Ministry of Energy and Water Development is an alternative because many neighbouring countries are in need hydro-electricity,” Mr Chibombamilimo said.
He said Zambia had the potential to export energy to neighbouring countries if it invested more in small hydro-power stations
[Zambia Daily Mail]