• This is one of the intervention measures to mitigating the high petroleum prices.
• Government is implementing different interventions to mitigate the high cost of fuel on the domestic market.
• Tanzania has offered to give Zambia gas in the next 3 to 4 years.
Energy Minister has disclosed that government will by mid-November, 2022 commerce the pilot project of blending fuel as one of the intervention measures to mitigating the high petroleum prices.
Peter Kapala said government is implementing different interventions to mitigate the high cost of fuel on the domestic market.
He is optimistic that as the economy grows and the Kwacha gains strengthen against major global convertible currencies, the cost of fuel will drop to reasonable prices.
And Engineer Kapala disclosed that he will be signing a Memorandum of Understanding with Namibia on Wednesday this week, to set up a pipeline that will bring in gas and petroleum products, while Tanzania has offered to give Zambia gas in the next 3 to 4 years so we must be ready for that.
“I am going to Namibia on Wednesday to sign an MoU to do a pipeline that will bring in gas and petroleum products. Also we have signed another MoU with Angola for the same, and Tanzania has already sent a draft MoU, Tanzania has offered to give us gas in the next 3 to 4 years, so we must be ready for that.
“We will soon start building another pipeline specifically for gas, so that we can also do a gas powered station in the northern part of Zambia, like Chinsali,” Engineer Kapala said.
Meanwhile, Engineer Kapala stated that government has ignored the 25% import duty because it was brought in to protect Indeni Oil Refinery, to discourage Oil Marketing Companies from importing finished products.
“So what is applying now is just Excise Duty and VAT that is why you have seen that the price hasn’t gone to K30, most critics were saying fuel will be at K34 per litre but no. Look at the Kwacha, it is performing very well, so as the Kwacha strengthens, the price of petroleum products will come down. As the economy grows, the price of products will come down,” he stated.