Fuel price hike a sign economy has collapsed – HH

UPND President Hakainde Hichilema has charged that the recent fuel pump price increase signifies an economic collapse that will further inflict more pain on the Zambian people in terms of survival.

Mr Hichilema says Zambians at various levels from domestic to industry have resorted to using alternative electricity sources such as gensets that use fuel for production in view of increased load shedding in the country, and that one would have expected government to reduce the price of fuel and not increase it.

He says fuel price increase will now mean a further reduction on economic activities as production costs will escalate further.

Mr Hichilema states that this situation will automatically lead to price increases on all goods and services, causing a further rise to the already very high cost of living.

He says a genuine government that is currently facing bankruptcy and cares for its citizens would have considered taking pay-cuts.

Mr Hichilema points out that there are leaders that care for their shrinking economies, citing newly elected Nigerian President Muhammadu Buhari who this week cut his salary by 50% to demonstrate that he is also tightening his belt having inherited a bankrupt economy.

The UPND leader notes that in the face of all these price increases, the only thing that has remained stagnant and frozen are people’s salaries and lack of employment opportunities, especially for the youths.

He says President Lungu is currently the only happy Zambian getting double salary as Republican President as well as Defence Minister and at the same time travelling and getting allowances.

Mr Hichilema adds that even worse is that the sharp fall on the Kwacha that has finally breached the K8 to US$1 due to poor economic performance and will put a further strain on an import dependent economy that will affect even small businesses such as cross-border traders.