FOR IMMEDIATE RELEASE
Preparing for fuel price escalations and shaping a sustainable Future.
September 23rd, 2023
LUSAKA – As we head towards 2024, there is need to acknowledge the formidable challenges the global fuel markets are experiencing and the cascading impacts on oil importing countries.
The situation is expected to intensify, hence the need for consumers to brace for difficulty time unless there is a de-escalation in the underlying shocks in the global markets.
The recent suspension of fuel exports by Russia, a leading exporter of fuel has further compounded the global inventory levels thus posing further predicament, presenting a dire challenge that is difficult to comprehend given Russia’s unprecedented policy direction. Additionally, the continued conflict between Russia and Ukraine poses a significant threat to fuel prices, regardless of our local currency’s status, especially during our ongoing economic recovery efforts. To this end, policy makers are encouraged to analyze options.
It is worth noting that in response to these critical circumstances, the Government has continued to uphold a 25% Customs Duty waiver on fuel.
“This decision underscores Government’s unwavering commitment to alleviating the burden on our citizens. Without this proactive measure, fuel prices would have already surpassed the K30 mark.” Dr Johnstone Chikwanda said.
As part of short term measures the Zambian Government is encouraged to activate the bilateral agreements it has with Angola, Nigeria and Saudi Arabia, with a view to paving the way for Government-to-Government (G2G) facilitation of fuel procurement based on a mutually agreed price, with a clear framework for periodic price reviews and direct private sector to import from countries where Government has bilateral agreements.
Furthermore, we need to conclude and implement the biofuels policy by dealing with bottleneck issues which have prevented the implementation of biofuels for over 10 years.
In addition, I wish to call for the speedy conclusion of the Strategic Petroleum Reserve (SPR) policy to guide and mentor how the strategic fuel reserves will be managed and discharged in the market to mitigate short term challenges.
Going forward, our nation is firmly committed to embracing the burgeoning Electric Vehicle (EV) industry.
This strategic move signifies Zambia’s dedication to a sustainable and energy-efficient future, aligning with global efforts to combat climate change.
The government has already set the nation on a promising driveway in this transformative journey of facilitating the emergency of the EV industry.
“In the face of adversity, the government, private sector and indeed the entire nation must stand united and resolute in their determination to navigate these challenging times, prioritizing the welfare and future sustainability of our beloved nation,” expressed Dr. Johnstone Chikwanda.
Issued by
Dr Johnstone Chikwanda
Energy Expert