Stick to fuel plan, govt advised

By SANDRA MACHIMA THE outcry from civil society organisations and various stakeholders on the recent fuel adjustments should not distort the government’s efforts to put in place long-term measures aimed at benefiting the nation, says Zambia Energy Forum Zambia chairperson Johnstone Chikwanda.

Mr Chikwanda said Government was demonstrating commitment to long-term solution possibilities by embarking on oil exploration ventures, adding that the public must take interest and support the oil exploration efforts.

“This is the most viable longterm solution to arrest fuel pump prices.”

He wondered why civil society organisations were castigating the government and called for proper long term measures and for a departure from the 60day fuel price review period, if government was to put in more efforts to halt fuel pump price rises.

Mr Chikwanda said the tariff was fundamentally driven by the exchange rate and the crude price on the international market, adding that the two variables were dynamic in nature: move up and down.

“The fuel adjustments are up and down, even if the currency was stable, the crude oil price alone is capable of driving fuel pump prices up or down,

“And at times the pump price will not be increased or reduced but will remain static depending on the location of the exchange rate and crude oil price,” said Mr Chikwanda

He noted that the policy direction to remove fuel subsidies was progressive, and the government must be encouraged to remain resolute and not slide back into unhealthy subsidies.

He said the public must rally behind government policy direction to pursue the discovery of commercially exploitable crude oil that were currently under way and in a few years’ time, the nation would be able to know the results of the exploration.

Mr Chikwanda said there was significant hope that oil would be discovered in the area where exploration was underway.