What is the purpose of having expensive fuel when it cannot be made available to the market in good time ?
I remember in October 2021, the new Minister of Finance announcing in his first budget speech that in the petroleum sub- sector , the objective will be to guarantee supply of all fuels used in Zambia at all times. According to government, one way of achieving that was allowing for cost reflective prices for both diesel and petrol.
In addition, the new government in Zambia decided to reintroduce VAT and DUTY on both petroleum products to raise revenue for the treasury through appropriate Statutory Instruments. Ordinarily, one would expect that these measures would achieve guaranteed supply of fuel but that is not the case at the moment with most parts of the country experiencing shortages from September to date.
The Ministry of Energy has figures for our daily and therefore monthly consumption of both diesel and petrol. There are so many fuel service stations operating that one expects these Oil Marketing Companies (OMCs) to have adequate stock of all petroleum products.
Given the change in public policy on the fuel pricing mechanism, there is no justification for vehicles to be lining up in some parts of the country for fuel.