Tue, 31 Jan 2017 10:43:27 +0000
By BUUMBA CHIMBULU
ZAMBIA has the highest fuel price in the Southern African region mainly due to the costs which Government incurs during transportation, says Ministry of Energy director Oscar Kalumiana.
Mr Kalumiana said old infrastructure also contributed to the high costs of fuel in Zambia.
He was speaking when he appeared before the Parliamentary Committee on Budgetary implications of fuel and electricity subsidies chaired by Mbala Member of Parliament Mwalimu Simfukwe.
“In terms of fuel price, yes our fuel price is high and when you do a comparison with our neighbouring countries depending on their specific location and circumstance, you may find that their price is higher than ours,” he said.
Mr Kalumiana said the performance of the local currency and infrastructure were also determinants of the local fuel price.
He explained that Government incurred high costs and losses during the transportation of fuel from Tanzania to Ndola.
“So it depends at which kind you are looking at and for example what is the strength of our Kwacha but generally our fuel prices are high.
“And determinants of why they are high is the nature of infrastructure that we have in the country and unless we reach at that point where we can change the nature as to how we get fuel in Zambia that we can only do so much,” he said.
He said proper infrastructure and improved performance of the Kwacha could help in reducing fuel prices.
Mr Kalumiana however said Zambia’s fuel prices in some cases were lower than some of the neighbouring countries such as Malawi and DR Congo.
He also said Zambia currently had enough fuel to supply the entire country for 40 days.
“We are comfortable with what we have now. As we speak now we have fuel that can take us for 4o days. Our tanks are full so for 4o days even if we have a problem we will not have challenges,” he said.
