Gov’t to save $16 million from fuel hike-ERB

GOVERNMENT would have accrued a deficit of $16 million dollars if fuel prices were not increased, says Energy Regulation Board director economic regulation Alfred Mwila.

Mr Mwila said following the procurement of a consignment 102, 000 metric tonnes of petroleum feedstock by government valued at $172 million late last year the State would have only realised $156 million had the pump price remained the same.

He said the main factors that affected the adjustment of fuel upwards were international prices of the commodity and the exchange rate of the Kwacha against the dollar.

Mr Mwila said this in Lusaka yesterday, during a media interactive forum in his presentation on pricing of fuel in Zambia.

“Government would have accrued a deficit of $16 million if the price of fuel was not adjusted upwards because of a cargo of 102,000 metric tonnes procured late last year, government would have only realised $156 million out of the total $172 million,” he said.

And the energy authority has announced that it will commence fuel marking aimed at combating the illegal duplication of fuel by unscrupulous traders.

ERB director for technical and regulation Allen Polito said the fuel marking were a special feature which was able to detect if fuel is altered.

Mr Polito warned that unscrupulous traders’ days of duplicating the quality of fuel were over as the fuel marking would detect whether or not fuel quality was altered.

He said the Statutory Instrument would empower ERB to check the quality of fuel tankers and filling stations were stocking.

Mr Polito said the move would ensure that motorists were receiving the best quality fuel.