‘GOVT SHOULD NOT LEAVE FUEL PROCUREMENT IN PRIVATE HANDS’

IT will be a big mistake for Government to leave the petroleum sector in private hands, Private Sector Development Association Chairperson Yosuf Dodia has said.

Mr Dodia said allowing the private sector to run the petroleum industry would lead to high prices of fuel which would in turn lead to high cost of doing business.

"In countries where petroleum sector is run by Government, prices of fuel have been kept low and allow those economies to develop," Mr Dodia said.

He said it was not a good idea for Government to privatise the petroleum sector because this could lead to economic recession.

Mr Dodia said Government should remain in the driving seat and improve operations at the Ndola-based Indeni Petroleum Refinery to reduce the prices of petroleum products.

Mr Dodia said it was unfortunate that Government was running the petroleum industry as a money making venture.

He said it was unbelievable that prices of fuel in Zambia had remained high despite the reduction of crude oil prices on the international market.

"The problem we are having with Government is that they are turning the petroleum industry into a money making venture where the price of fuel is so expensive even though the prices of fuel on the international market have come down," Mr Dodia said.

Mr Dodia said there was need for Government to ensure that fuel comes into the country at cost effective price for the development of the economy.

Government, he maintained, should continue to be in the forefront of importing fuel stock for Indeni and ensure that prices of fuel supported economic growth.