HIGH FUEL PRICES WORRY ACTIONAID

…fear that the record high fuel increase coupled with the depreciation of the Kwacha is likely to increase poverty in the country ACTIONAID Zambia (AAZ) has raised alarm at the record high increment in the prices of petroleum products that has seen the price of petrol hitting K34.1 while that of diesel has increased to K32.2.

Jovina Newanzake, ActionAid Zambia interim Country Director says there is a real possibility that poverty levels would continue rising especially among the already marginalised in the country such as women and the young people as a result of the ever-increasing high cost of living.

Ms Newanzake said the pass-through effect of the increase in fuel prices, coupled with the rapid depreciation of the Kwacha was adversely affecting the country’s inflation rate that had risen to13.2 percent in January and had continued to erode the incomes of households.

She said ActionAid Zambia was therefore refuting the claim by Government that fuel subsidies were only benefitting a minority of the Zambian population.

“A high increase in the prices of petroleum products has therefore been enforced for February 2024. Since the IMF Board approved the SDR 978.2 million (US$ 1.3 billion) in August 2022, their structural benchmark to remove the subsidy on fuel has effectively increased fuel prices by 58.7 percent for petrol and 39 percent for diesel from September 2022,” Ms Newanzake said.

Ms Newanzake said ActionAid Zambia was aware that it was the IMF condition to implement a cost-plus pricing model that was adjusting prices of fuel every 30 days, and reinstatement of VAT and excises taxes on fuel.