…if the high cost of petroleum products has to be reduced in the short term and cushion Zambians
By Nation Reporter
TO reduce the cost of fuel in the short and medium term, Government should start importing the commodity from Angola, which is a cheaper source than Tanzania, a parliamentary committee has suggested.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”4,5,6″ ihc_mb_template=”2″ ]
Committee on Energy, Water Development and Tourism chairperson Chanda Katotobwe told a select committee on planning and budget yesterday that buying fuel from Angola would be cheaper than importing through Tanzania.
Mr Katotobwe who is PF Luapula MP said the cost of refined oil accounts for about 80 percent component of the fuel pump price.
“Zambia imports its fuel through Tanzania at a very high cost when cheaper alternatives in the region such as Angola can be exploited. To reduce the price of fuel in the short and medium term, Government should look to cheaper sources of fuel such as Angola which is the cheapest in the region,” he told his fellow parliamentarians.”
Mr Katotobwe said in the long run, Zambia should consider building pipelines from Zimbabwe, Namibia, and Mozambique into Zambia to ensure security of supply.
He also said government, should as a matter of urgency ,allocate resources towards improving petroleum infrastructure and the country’s storage capacity.
“High fuel cost leads to increased operating costs for businesses, higher transportation costs for customers and an increase in the cost of living,” Mr Katotobwe said.
He submitted on behalf of the committee that government should secure resources to construct additional fuel storage facilities to increase the country’s strategic reserves and possibly move from the monthly to quarterly fuel price reviews.
“Government should also explore effective exchange rate mechanisms to mitigate fluctuations thereby further increasing to stability and affordability of the commodity,” Mr Katotobwe said.
He said the committee was also concerned that no measures had been introduced in the 2024 national budget to reduce the price of fuel in the short to medium term.
Mr Katotobwe said while Indeni was a state-owned company which did not receive transfers from the national budget, neither the Ministry of Energy nor the Ministry of Finance and National Planning had an allocation towards the recapitalization of the company.
“Indeni is grappling with a total debt of K362 million it owes to both local and international creditors and is faced with additional challenges due to on-going lawsuits related to the outstanding debt,” he said.
