By BUUMBA CHIMBULU
PROCUREMENT and handling of fuel should be cleaned up by Government to ensure that the perceived wastage is removed.
It would be better to clean up the procurement and handling of fuel so that the perceived wastage is eliminated, according to the Financial Analysts, Naylor Kopakopa.
Mr Kopakopa stated that it was important for the Government to look at how much subsidy would be reduced if they clean up the fuel procurement system.
“By how much would we reduce the subsidy amount if we clean up our fuel procurement system? It would be better to clean up the procurement and handling of fuel so that the perceived wastage is eliminated,” Mr Kopakopa said.
He indicated that there was no economic benefit in removing fuel subsides from an economy that was bleeding and during Covid-19 period when almost every country was supporting their economies.
Mr Kopakopa however said there was no moral justification in keeping fuel subsidies when the country had unsustainable debt.
“What is worrying though is that the subsidies are not being abolished in 2022 but they are simply being transferred from fuel to other areas like education and among others. It is a question of judgement as to which part of our economy can give us the highest benefit if it is supported by subsides,” he explained.
Mr Kopakopa does not think it would be better off to spend K45 per litre of petrol and have free education as a nation.
On December 16, this year the Energy Regulation Board (ERB) increased the price of fuel after removing subsidies on petroleum products to reflect the correct price of the commodity.
The pump price of petrol was increased to K21.16 per litre from 17.62 per litre while diesel price rose to K20.15 per litre from K15.59 per litre.
Author
