The Energy Regulation Board -ERB- has increased the fuel pump price with immediate effect.
In a statement, ERB says going forward fuel pump prices reviews will be carried out every 30 days.
News & Perspective
Removing the subsidy on fuel is one of the most contentious socio-economic policy issue in Zambia today. This is because subsidies on fuel was considered to be an important instrument for keeping fuel prices, and hence the cost of living, low.
However, it makes sense to realize that in
the long run, the fuel subsidy reduction with income transfers aimed at poor households will alleviate the negative impacts on household income.
What most people don’t seem to realize is that fuel subsidies by the PF government used to be a subsequent financial burden that had a significant negative impact on the Gross Domestic Product (GDP) of Zambia. This was an indicator to the new dawn government that the fuel pricing policy needed attention. Weather new dawn government wants the 68 million US dollars per month that was used on fuel subsidies to finance and improve other sectors which will benefit all the people of Zambia especially those who are vulnerable and poor. For example most Zambians will ultimately benefit benefit if we channel the savings to other sectors such as SMEs job creation projects, and improvement of the health and education sectors. The removal of subsidies by the new dawn government will remove the strain that the US dollar had on the Zambian kwacha so that the value of the Zambian kwacha can further increase. This will help the new dawn government of double H7 to service the 42 million US dollars debt which was left behind by the PF government. As the economy of Zambia stabilizes, the new dawn government through the ERB will continuously review the fuel pump prices.