Fuel to go up 40P.C. with subsidy removal – OMCAZ
By KETRA KALUNGA
THE fuel pump price is expected to increase by between 35 to 40 percent with the removal of subsidies on fuel, the Oil Marketing Marketing Companies Association of Zambia (OMCAZ) has anticipated.
OMCAZ president, Kafula Mubanga said the suggested fuel price is around K20 to K25 following the government’s decision to remove subsidies on fuel.
Dr Mubanga said in an interview that the one litre of fuel currently f going for almost K18 is expected to cost between K20 to K25 which is the pump price in the region.
He said the country was the cheapest in the region about four months ago but it’s expected to have the uniform fuel pump price with the neighbouring countries with the removal of fuel subsidies.
“We may not approximate very systematically but you anticipate the product to go between 22 to 25 percent, because in the region that is almost the cost of the pump price, remember we were the cheapest in the region as of 3, 4 months ago,” he said.
Dr Mubanga said the removal of subsidies would lead to an increase in profit margins for the Oil Marketing Companies.
He added that the move would also see a lot of people venturing into the sub-sector because of the reasonable and attractive profit margins.
Dr Mubanga however stated that the removal of fuel subsidies has a direct repercussion on the economy in that the cost of living would be higher.
