Editor's Picks Energy Local Business

Introduce formula to be embedded in fuel increment – Bus Association

• Government must come up with a formula that will be embedded in the increment of fuel.
• When the pump price of fuel reduces, there must be a percentage by which bus fares should go down.
• Current fuel increment is within the threshold of fares that were arrived at during the last stakeholders’ meeting.

Bus and Taxi Drivers Association of Zambia has called on government to come up with a formula that will benefit commuters whenever there is an increment in fuel prices.
Speaking in an interview with Money FM News, Association National Secretary General Sydney Mbewe said now that Energy Regulation Board has indicated that it will be reviewing fuel prices on a monthly basis, it is in the best interest to arrive at a formula which will be embedded in the increment of fuel.
Mr. Mbewe stated that once the formula is arrived at, there must be a percentage by which bus fares will go up when the fuel prices increase according to the ratio that will be given by the Energy regulator.
“It is in the best interest and practice that a formula is arrived at that is going to avoid meetings to look at the adjustment of bus fares. Our advice to government is that come up with a formula that will be embedded in the increment of fuel so that when there is increment of fuel prices, there is a percentage by which fares will go up according to the ratio that will be given,” Mr. Mbewe recommened.
He said when the pump price of fuel reduces, there must be a percentage also by which the bus fares should go down because in most cases fuel price increment triggers rise to the hike in bus fares but the reduction has not benefited commuters in any way.
“Also when the pump price of fuel goes down, there should be a percentage by which also the bus fares should go down because we have seen from time immemorial that the increment of fuel has given rise to the increment of fares but the reduction of fuel has not benefited the commuters in enjoying the reduction in fares.”
“So in all fairness and good practices, government should come up with a formula that will also give benefit to the traveling public,” he suggested.
Meanwhile, Mr. Mbewe said the current fuel increment is within the threshold of the fares that was arrived at during the last sitting with Ministry of Transport, Road Transport and Safety Agency (RTSA) and bus Operators, therefore the Association does not expect to see an increase in bus fares at the moment.
“The current fuel increment is within the threshold of the fares that were arrived at during the last sitting with Ministry of Transport, RTSA and bus Operators. So for the moment we do not see that increment in the fares,” Mr. Mbewe said.
Energy Regulation Board (ERB) has increased fuel pump prices by K2.12 Ngwee per litre for petrol and K2.61 Ngwee per liter for diesel, while the price of Kerosene has remained unchanged.

Related posts

CUTS advocates for Fuel Fund

Money FM

Economist attributes Kwacha gains to positive sentiments around debt restructuring

Money FM

ZAFOD calls for inclusion of disabled people in Parliament

Money FM

Leave a Comment