Fuel Was Cheap Because Of Politics, Says Petroleum Transporters Association Of Zambia

The Petroleum Transporters Association of Zambia (PTAZ) has backed the recent hike in fuel pump prices necessitated by the removal of subsidies on the commodity by the Government.

PTAZ is an association with a membership of 96 transporters owning over 800 fuel tankers that distribute fuel throughout the country and transporting fuel from the ports into Zambia.

PTAZ Secretary General Benson Tembo has branded the increase in fuel prices as long overdue.

The Energy Regulation Board (ERB) last week announced an upward adjustment of pump prices of petroleum products between 3 Kwacha 54 Ngwee and 4 Kwacha 47 Ngwee following the removal of subsidies on the commodity.

Speaking in Ndola, Mr. Tembo said the old fuel pump prices in Zambia were artificial and were only sustained for political reasons by the previous Patriotic Front Government.

“This bald decision made by the Government is long overdue. It has been eating on the progression of this country. We are in the fuel transport subsector and we have been involved in the movement of the product throughout the country and the movement of the product from the ports into the country,” Mr. Tembo said.

“We are aware of the activities that have been happening prior to this fuel price adjustment; I want to say that the price adjustment you have seen today would have happened in November, 2020. The oil marketing companies were demanding price adjustments at that time because of the landing costs.”

“As you are aware Indeni has not been operational since last January and all petroleum products in this country have been imported as finished products. And local oil marketing companies (OMC) were given import waivers to bring in these products so along the supply chain the landing costs went up and the OMC demanded that the Government increase the pump price but during that time the Government was hesitant to increase because of politics,” he said.

Mr. Tembo added:”Instead in January and February, the Government decided to suspend the VAT, excise duty and all other fees in the price buildup just to maintain the price up to August elections. Unfortunately that Government was booted out and we have a new Government, so today when there is this price adjustment what we are saying as critical players in this sector is that this was a very bold decision that will bring back the country on track, a decision that will bring back the country on economic revival.”

“If you look around, we have been transporting fuel from Beira (Mozambique), we pass through Zimbabwe. The product in Zimbabwe is expensive. We have been transporting fuel from Tanzania; we pass through Tanzania the product in Tanzania is expensive. The question has been why is the Zambian product cheaper? It is politics, politics and politics. Now that politics are over we expect the members of the public to rally behind the Government so that we can go to the other side where we will see progression.

Fuel price increment announced by ERB has sparked bus-fares hike confirmed by the Road Transport and Safety Agency (RTSA) on Monday.