Business and Technology

Fuel price hike unstoppable, says finance minister Dr. Situmbeko Musokotwane

Finance and National Planning Minister says government spends over $67 Million dollars monthly to subsidize the cost of fuel.

And Dr Situmbeko Musokotwane said that Zambia currently owes about $480 Million dollars for unpaid fuel supplies inherited by the UPND administration.

Dr. Musokotwane noted that it is for this reason that the 2022 national budget has no provision for subsidies on fuel and electricity.

“The previous administration was sitting on unpaid bills amounting to $480 Million,” he said.

“The price of petroleum products on the international market is determined by three factors and they include; the dollar price of oil, the exchange rate of the Kwacha against the dollar and the cost of supply chain.

He added that the money that will be saved from subsidies will go a long way towards improving the welfare of Zambians especially those in rural areas.

He said it is justifiable for the government to channel resources that will be saved from fuel subsidies towards the provision of quality education and job creation as well as the payment of retirees among others.

Dr Musokotwane said this during a joint press briefing between Zambia and the International Monetary Fund (IMF) in Lusaka yesterday.

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