"Energy expert Charles Kaisala stated that the recent fuel price increase was necessary to safeguard petroleum supply amid rising international oil prices and a weaker Kwacha. He noted that maintaining subsidies indefinitely would strain government revenue and divert resources from essential services."
By Ellen Hambuba
Energy expert CHARLES KAISALA says the latest fuel price increase was necessary to safeguard petroleum supply amid rising international oil prices and a weaker Kwacha.
Mr KAISALA who is also UPND Chairperson for Energy, says the increase follows the expiry of six months of tax relief measures, which saw Government suspend Excise Duty and zero-rate Value Added Tax on petroleum products.
He says Zambia’s dependence on imported fuel exposes the country to global oil price fluctuations, with tensions in the Middle East further driving up costs.
Mr Kaisala says maintaining fuel subsidies indefinitely would place pressure on government revenue and divert resources from essential services such as education, healthcare and social protection.
He has called for increased investment in renewable energy, domestic electricity generation and strategic fuel storage to reduce the country’s dependence on imported petroleum.
Mr Kaisala says targeted support for vulnerable households is a more sustainable approach than blanket fuel subsidies.
Originally published by ZNBC News
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