CSPR welcomes fuel reduction

The Civil Society for Poverty Reduction (CSPR) has welcomed the move by the Energy Regulation Board (ERB) to reduce the price of fuel pump prices for both retail and wholesale.

CSPR Executive Director Patrick Nshindano has however urged the ERB to continue regular reviews of Petroleum prices in line with their mandate.

Mr. Nshindano notes that in the past years, fuel prices had not responded to both local and international community fundamentals such as changes in global prices and currency fluctuations which led to distortions in petroleum prices

Mr. Nshindano says the current reduction is attributed to the economic changes in these economic fundamentals.

He adds that the lack of regular reviews robs the country of the opportunity to enjoy the benefit of the low oil global prices necessary for poverty reduction.

He states that during the country’s high inflationary period mainly due to the currency evaluation, the petrol prices were kept artificially low and subsidized by government.

He explains that this led to a sharp increase of about 38% and that the removal of the subsidies further pushed the cost of living upwards and stressed the economy hence the need for regular reviews to be maintained.

And in another development, the Zambia Consumers Association (ZACA) says it expects all filling stations across the country to heed to the Energy Regulation Board (ERB) directive to reduce the fuel prices.

The association is also calling on transport operators to reduce the transport fares following the adjustments made to the prices of petroleum products.

ZACA Information Secretary Juba Sakala says consumers need to benefit from the reduction in fuel prices.

Mr. Sakala says despite the reduction being minimal, it will make a difference if the transport fares are reduced.

He also believes that this will also see the reduction of prices for various goods and services.