OMCS BLAME ERB FOR COSTLY FUEL

…Dr Kafula Mubanga, the OMCs president says the sharp increase in the price of fuel has come as a shock to consumers, worried the increase shall have such a negative impact on the health of the economy

OIL Marketing Companies have blamed the Energy Regulation Board (ERB) for the shock that the sharp increase in the pump prices of fuel for the month of February has come with.

Oil Marketing Company Association of Zambia president Kafula Mubanga said ERB had been providing a support fund in a form of subsidy that was hidden and had consumers been forewarned that there was a deficit, it would have been easier to adjust.

Dr Kafula said the ERB should have continued to provide a subsequent subsidy than abruptly ambushing Zambians with such a high increase of K4 which had suddenly caused shock ripples in the economy.

He said Zambians were not psychologically prepared for such a record high in the prices of fuel and that it was likely that the daily economic activities shall be negatively impacted especially at household level.

He said it was wrong for the ERB to make a sudden and astronomical increase in the prices of petroleum products based on an excuse that the emergency fund which was subsdising the product had been depleted.

Dr Mubanga is wondering why ERB had decided to keep the fund that was subsdising fuel prices a secret when such a fund had always been there and used by successive governments.

“ERB just popped up at the end of the period saying that the fund was depleted but when releasing the fund, they never informed Zambians and had board forewarned consumers, it would have been easy to tell the people that the fund was done and they should expect an increment.”

“I think that was not properly managed by ERB. ERB refused to call it a subsidy but an emergency fund but whatever name they might have called it, the purpose was to mitigate the rising cost of the commodity which is equal to subsidy,” Dr Mubanga said.

Dr. Mubanga said there was lack of planning by ERB because they went into a reserve fund which they used for two month with a foreseeable challenge which a month later had presented itself.

He said the cushion that ERB was providing to the OMCs to cushion consumers should allowed them to plan for open tenders to allow completion, expedition of Zambia Public Procurement Authority (ZPPA) for multi-users of the TAZAMA pipeline.

Dr. Mubanga said the ERB had not showed any thought of commitment to try and protect the citizenry from the sharp increase that was forth coming.

Meanwhile Dr, Mubanga has said the shortage of fuel in some filling stations that was experienced last month was as a result of logistical challenges.

He however said it had been a culture that towards the monthly review of fuel prices, most OMCs tended to withhold their fuel to make sure they optimized on the review or cover-up for their possible losses.

He said it was expected to happen toward the review but after the monthly review it was expected that there would be a lot of stock available.