Impact of reduced fuel price will be minimal – EAZ

The Economics Association of Zambia (EAZ) says it does not expect the announced reduction in the price of fuel to have a substantial impact on the cost of doing business in the country.

EAZ President Chrispin Mphuka says his association anticipates that if there will be any impact, such an impact would be minimal.

Chrispin Mphuka

Dr. Mphuka says this is because the earlier increase in the price of fuel was huge compared to the percent at which the Energy Regulation Board (ERB) has now reduced the price.

In an interview with QTV News, Dr. Mphuka says what the EAZ however thinks is important is the principle being used to reduce and increase fuel pump prices in the Country.

Dr. Mphuka says his association wants increases or reduction in the price of fuel to be in conformity with market conditions.

He says this is order that that the Country avoids creating unnecessary subsidies which become a burden on Treasury especially when government is running budget deficits.

Dr. Mphuka states that what the EAZ therefore expects from now on from the ERB is to effect adjustments in the price of fuel immediately there are changes in the crude oil market.