Zambia’s New Dawn Govt Affirms no plan to Revert Fuel Price adjustments

In response to sensational media reports, the New Dawn Government has to clarified that they have no plans to revert to previous methods of adjusting fuel prices after several months. Such a system makes it difficult to manage debts owed to oil marketing companies and does not result in cost-reflective pump prices.

The Minister of Energy, Hon. Eng. Peter Chibwe Kapala, stated that in recent media interviews, his office did not indicate a return to the quarterly review system. The government plans to continue with monthly reviews to ensure consumers pay for the actual costs.

While the cleaning of the TAZAMA pipeline and its use for diesel transport at a lower cost may seem to signal a return to quarterly reviews, this is not the case.

The government may consider quarterly reviews if bulk purchases and storage of fuel for three months becomes possible, as this will allow them to tie pump prices to actual costs. However, this is still just a possibility, and the government has no plans to move away from monthly reviews at this time.

The government remains open to feedback and complaints from stakeholders affected by the monthly review of fuel prices. So far, there is no evidence that the current monthly review conducted by the Energy Regulation Board (ERB) has affected any company’s operations.

The decision to continue with monthly reviews is based on the understanding that reverting to quarterly reviews will further harm the economy. Such a move will increase the debts already owed to oil marketing companies.

While the monthly review may not be popular with some citizens, it will produce the intended results in the long run.

In summary, the New Dawn Government has no plans to return to quarterly fuel price reviews, and monthly reviews will continue.

They remain open to feedback from stakeholders and believe that the monthly review mechanism will ultimately be beneficial to the country.