SAUDI CRUDE OIL DEAL APPLAUDED
PRESIDENT Edgar Lungu’s initiative to engage Saudi Arabian oil company Aramco to supply cheap crude oil to Zambia is progressive and commendable, says consultant and veteran economist, Professor Oliver Saasa.
And Prof Saasa said in Lusaka that the supply of the crude oil must be consistent.
He said, however, that Government should not depend on one source as competition would likely give the government cheaper options.
“The move by Government to buy cheap crude oil from Saudi Arabia is indeed welcome, but we should not just depend on one source, the plans to build a pipeline between Zambia and Angola should also be expe dited to give us options,” Prof Saasa said.
Minister of Energy Matthew Nkhuwa recently announced that the crude oil which the government bought at US$20 million would dock at the port of Dar es Salaam tomorrow.
President Lungu signed the US$20 million agreement for the supply of fuel to Zambia in May during a trip to Saudi Arabia at the invitation of that country’s King Salman bin Abdulaziz al Saud.
Meanwhile, Prof Saasa said fuel and electricity were vital to drive the wheels of the economy.
He said the cheaply priced crude oil would help to reduce the prices of fuel thereby cutting the cost of production and in turn making basic commodities cheaper to access by the ordinary Zambians.
Prof Saasa said such deals had the potential to grow the country’s economy and should be encouraged.