Q FM Africa's Modern Radio
Energy Minister David Mabumba has maintained that the recent fuel price adjustment was necessary.
Mr Mabumba has told Parliament in a ministerial statement that this is in order to ensure that fuel prices are cost reflective, and that the country does not revert to the old system of having the subsidy on fuel as was the case before 14th Ocober,2016.
He states that dealing with the landed cost of the petroleum product which accounts for 46% of the overall pricing structure will go a long way on having an impact on the end user.
Mr Mabumba says government is taking all the necessary measures to lower the price of fuel including tendering the procurement of petroleum products on a quarterly basis so as not to be locked into long-term contracts.
He points out that Kenya and Tanzania who procure petroleum products on a monthly basis have suppliers competing on the basis of margins.
Mr Mabumba was responding to a follow up question by Mazabuka Member of Parliament Garry Nkombo who asked why government cannot remove the 25% import levy on finished petroleum products so that fuel can be cheaper in the country.