GOVT URGED TO REINTRODUCE FUEL SUBSIDIES TO CUSHION ADVERSE IMPACT OF HIGH FUEL PRICES ON ECONOMY
By Leah Ngoma
Patriots For Economic Progress –PEP- Leader Sean Tembo is urging government to consider reintroducing fuel subsidies in order to cushion the adverse impact of high fuel prices on the economy.
Mr Tembo tells Phoenix News that governments in both developing and developed countries subsidies some sectors of their economy to maintain reasonable prices of certain services, hence the need for government to rethink its policy decision on fuel subsidies
He is of the view that subsiding fuel is cheaper than addressing the adverse impact high fuel prices will have on the cost of living and overall performance of the country`s economy.
Meanwhile, Mr Tembo says it will be difficult for the country to maintain reasonable fuel prices without its own oil refinery.
Mr Tembo has since reiterated that the government made a bad decision to remodel the Indeni Oil Refinery, saying it was cheaper for the country to import crude oil and process it unlike importing already processed fuel as the case is now.
The Energy Regulation Board-ERB- on Thursday last week adjusted upward pump prices for petrol and diesel by K4.21 ngwee and K2.19 ngwee respectively and now selling at K34.19 ngwee from K29.98 ngwee and k32.15 from k29.96 ngwee.