Government has projected price reduction end of 2008 following the procurement 90 metric litre at the cost of US $ 53 million.
And government says it has embarked on a construction and rehabilitation of two (2) million litre-storage infrastructure for petroleum strategic reserves in each provincial centre across the country through a tendering process.
Presenting his his ministrial statement in Parliament , Thursday, Energy and Water Development Minister Kenneth Konga said the projected low fuel prices will also be due to next month’s favourable exchange rate he hoped would be favourable.
He said prices of oil on the world market have reduced from US$140 to US$60 or less per barrel.
He said government has envisaged a subsidizing mechanism that would be administered by the National Union Pricing Programme (NUPP) under the National Energy Policy where fuel would be sold at par (same) in both rural and urban areas.
Mr. Konga disclosed that the construction and other rehabilitation works at Chipata, Mongu, Mansa and Livingstone depots were expected to be completed in February, 2009.
Mr. Konga revealed that government has signed a 2-year contract with an International Finance Company to supply crude oil 30 to 45 days in advance as it has learnt lessons in the past where the country was plunged in fuel crisis.
The Minister said at Indeni in Ndola, government has bought a US$2 million 40 metric litre depot for diesel but was quick to point out that the government has put in place measures to curb the possible shortages that rocked the country in the recent months.
He explained that variation in fuel market prices were done on detects of demand and supply and that lack of adequate bulk fuel storage depots were a limiting factor.
And on electricity, the Energy Minister said load shedding will continue because of the shut transmission line that collapsed at one of the major power stations.
Mr. Konga said government working with ZESCO is rehabilitating the generators so that they normalise soon.
He added that construction of smaller power stations from across the country has started at Kalungwishi at cost of US$780 million to produce 210 Mega watts (MW); Itehzi-tehzi 120MW (US$270m); Kabompo 34MW (US480m) Kariba North Bank Power Extension project 360MW (US$312m) and Kafue Gorge Lower Station 750MW to cost close to US$2 billion respectively.
ZANIS/KC/ENDS/MM