FUEL PRICE HIKE WILL TRIGGER COST OF LIVING

Dear Editor, THE recent hike in fuel price will trigger high cost of living. Ultimately, this will worsen the standard of living in that people are already grappling with unprecedented poverty levels.

The Energy Regulation Board (ERB) recently announced the increase in the price of the petroleum products.

The ERB Chairperson, Mr Reynolds Bowa announced that petrol has been adjusted upward from K29.98 to K34.19 whereas the pump price of diesel has been increased from K29.96 to K32.10.

Mr. Bowa said that the increase in the pump price of fuel has been attributed to the geopolitical tension in the Middle East. He also cited the geopolitical anxiety over global oil supply as well as supply distributions to some countries such as Libya for instance.

The fuel price of diesel and petrol were maintained in the previous four months from October last year to January this year.

It is a fact that the price of fuel has a direct effect on the prices of goods and services. When the price of fuel is increased, the trickle down effect is that the price of commodities go up.

On the other hand, the reduction in the price of fuel will ultimately lead to a reduction in the general price of goods and services.

People should brace themselves for high cost of living in view of the recent increased pump price of fuel on the international market. The prices of commodities including mealie meal, our staple food will skyrocket.

The Road Transport and Safety Agency (RTSA) has since increased bus fares for both local and intercity routes. This follows the recent upward adjustment of the price of fuel.

Zambia is currently grappling with economic challenges. The recent increase in the pump price of fuel will worsen the poverty levels in the country. The majority of people in our country are living on less US$1.00 per day.