GOVT’S FAILURE TO REVERT TO QUARTERLY REVIEWS OF FUEL PUMP PRICES HURTING ECONOMY
By Balewa Zyuulu
Economist Bright Chizonde says government’s failure to revert to quarterly reviews of fuel pump prices is hurting the economy.
Mr Chizonde is concerned that despite President Hakainde Hichilema tasking the Ministry of Energy Permanent Secretary Peter Mumba to assess the monthly fuel price review, no action has been taken by the ministry.
In an interview with Phoenix News, Mr Chizonde says a more stable review period for fuel prices is crucial in the absence of energy subsidies.
He observes that the continuous surge in inflation is directly linked to the rising cost of fuel, which has a cascading effect on essential goods and the productivity of the economy.
Mr Chizonde argues that the Energy Regulation Board-ERB’s monthly fuel price adjustments perpetuate rising inflation, while simultaneously, the Bank of Zambia’s implementation of detrimental policies reduces the availability of money in the economy, adversely impacting its growth prospects.