• Fuel has multiplier effects on the economy.
• It drives the wheels of production.
• High fuel prices affect the economy and household incomes.

An Energy Expert has reaffirmed calls for government to reintroduce fuel subsidies in order to lighten the economic burden that citizens are facing.
Speaking in an interview with Money FM News, Yotam Mtayachalo stated that fuel has multiplier effects on the economy as it drives the wheels of production, therefore if the cost of the commodity is high, the economy and household incomes are negatively affected.
Mr. Mtayachalo noted that governments all over the world are elected to protect the interest of citizens and not to inflict economic damage on the people.
“Any responsible government anywhere in the world has to protect the interest of its citizens, it’s not all the citizens in the country who are rich, the majority are poor so that is why governments are elected to lighten the burden they people are going through. Governments are not elected to inflict economic damage on citizens.”
“All these governments from UNIP up to PF used to have fuel subsidies let’s not be cheated as Zambians that subsidies are not necessary, even oil exporting countries like Nigeria, Indonesia, they have fuel subsidy but they produce oil. They do that because they understand that fuel has multiplier effects on the economy. It drives the wheels of production, now if the cost of fuel is outside this world, it means that the economy is affected, household incomes are affected. That is why the government is there to ensure that they provide a certain percentage of subsidies to protect the vulnerable people in society,” Mr. Mtayachalo said.
He advised government to take a leaf from oil exporting countries like Nigeria which spends about 7 billion US Dollars annually on fuel subsidies and Indonesia; one of the leading oil producers in the world spends more than 20 billion US dollars on fuel subsidies.
For example Nigeria is an oil exporting country, it spends about US$7 billion Dollars annually on fuel subsidies. Indonesia is also one of the leading oil producers in the world and it spends more than US$20 billion on fuel subsidies. I want to appeal to this government that if they continue at the rate they are moving, just increasing things is the order if the day, people will think that they have failed to run the affairs of the country,” he added.