Expert urges departure from imported fuel
By Ludia Ngwadzai
ENERGY expert Bonface Zulu has urged government to reduce the country’s dependence on imported fuels citing the vulnerability of the economy to global price shocks.
On Tuesday the Energy Regulation Board (ERB) increased fuel prices from K23 to K29 for diesel and K26 to 27 for petrol.
“Since Zambia cannot control international oil prices, the country must reduce its dependence on imported fuels,” Zulu said.
Speaking to The Mast, Zulu proposed expansion of renewable energy (solar, hydro, wind) to reduce reliance on diesel generators.
He urged government to invest in biofuels such as ethanol and biodiesel from local crops.
“Promoting electric mobility through buses, trains, and vehicles powered by clean energy, building strategic fuel reserves to cushion against future shocks,” he said.
Zulu called for strengthened regional cooperation to diversify supply routes and negotiate better deals.
Commenting on the suspension of excise duty, the energy expert said the tax relief comes at a cost to government revenue.
“Suspending these taxes means government collects less revenue from fuel sales. This is a short-term sacrifice aimed at protecting households and businesses from unbearable costs,” Zulu said.
He appealed to government to strengthen revenue collection in other sectors and ensure subsidies were targeted to vulnerable groups rather than applied across the board.
Zulu said fuel prices have far-reaching economic implications.
“Fuel is a cost driver across the economy,” he said.
Zulu said higher pump prices increased transport costs, which in turn raised food prices and contributed to inflation.
“The government’s move helps slow down this chain reaction, protecting the purchasing power of citizens and keeping businesses afloat during a difficult period,” he said.
Citizens must support government’s decision saying it is a necessary short-term cushion.
Zulu said Zambia should accelerate investment in alternative energy and sustainable transport to ensure the country was less vulnerable to external shocks in the future.
“Citizens should remain calm and understand that while prices have risen, they would have been much worse without this intervention,” he said.
Cabinet declared the current fuel supply situation an emergency and announced immediate measures to cushion citizens and businesses.
At a special Cabinet meeting chaired by President Hakainde Hichilema, ministers approved the zero-rating of Value Added Tax (VAT) and the suspension of excise duty on petrol and diesel imports effective April 1 and will run for three months.
