UKA DEMANDS URGENT DIALOGUE WITH ZIMBABWE TO AVERT A FUEL CRISIS
LUSAKA, Friday, October 25, 2024
The United Kwacha Alliance, UKA is concerned that the two-fold blow of a fuel shortage and a serious energy deficit will completely cripple businesses and bring an already ailing economy to a total collapse.
Zambians are barely surviving in this harsh economy and to add a fuel shortage to the long hours of load shedding that citizens are grappling with is not only a leadership failure but also an act of cruelty.
We note the explanation by Minister of Energy, Hon. Makozo Chikote MP that the fuel shortage has been caused by the delayed berthing of a ship carrying petrol at the port of Beira, which led to congestion as some of the Oil Marketing Companies-OMCs had locked orders for petrol, which was on this vessel.
Secondly, that the Zimbabwean Government has introduced transit deposits of between US$22,000 and US$30,000 for tanker trucks passing through Zimbabwe with petroleum products to prevent transit fraud.
We note that this has increased the operating costs for OMCs using this route, who have been forced to reroute their cargo through Chanida border in Katete, which is 400 kilometers longer than transiting through Zimbabwe.
As UKA, we are concerned that this increase in transportation costs incurred by OMCs, will likely be passed onto consumers through increased fuel pump prices.
We have also noted with concern that instead of engaging the Zimbabwean Government through diplomatic channels, Government through the Mission in Mozambique has opted to engage authorities at the Port of Beira to expedite the clearing of the trucks.
It is clear that as long as no effort is made to dialogue with authorities in Zimbabwe to have this Non-Tariff Barrier –NTB removed, it will be a challenge for Government to resolve the shortage of fuel, especially petrol, kerosene and Jet a 1, which are transported by road.
As UKA, we demand Government does the following:
1. Urgently resolve through established diplomatic channels, the issue of transit deposits with the Zimbabwean Government;
2. To resist the temptation of passing the high transportation costs incurred by OMCs onto the consumers through increased fuel pump prices;
3. Reintroduce subsidies to cushion citizens from the high pump prices of fuel; and
4. Use the Southern African Development Community-SADC, Common Market for Eastern and Southern Africa-COMESA and African Union-AU to which both Zambia and Zimbabwe are members to resolve trade issues between the two countries.
We, however, nod Government’s decision to review its decision to disengage from fuel procurement as a step in the right direction and we hope that a decision will be made for Government to be fully involved in the petroleum subsector in national interest.
Silavwe Jackson
Communications Chairperson
United Kwacha Alliance-UKA
UKA DEMANDS URGENT DIALOGUE WITH ZIMBABWE TO AVERT A FUEL CRISIS
