Fuel price hikes to cause economic shocks – Tembo

Opposition Patriots for Economic Progress (PeP) president Sean Tembo says the recent increase in fuel pump prices will cause economic shocks in various sectors of the economy.

Mr Tembo has described the hikes of about 30% for diesel and 20% for petrol as the highest single increments in the history of Zambia and the region at large.

He notes that previous increments in fuel prices over the past 20 years have only ranged from 4 percent to 9 percent.

Mr Tembo further states that the New Dawn administration was expected to undertake consultations with bus operators before fuel prices were increased so that new bus fares could be implemented on the day following the increase in fuel prices.

He says it is unreasonable for Government to increase fuel prices and then tell bus operators not to increase bus fares pending conclusion of talks between the Road Transport and Safety Agency (RTSA) and the bus operators.

Mr Tembo says it is common knowledge that bus owners operate on very thin margins and that it is unreasonable and unsustainable for Government to expect them to subsidize their services, even for a single day.