• Fuel pump prices are likely to be adjusted upwards.
• When the subsidy is removed, prices of imported products will be slightly higher.
• The Association anticipates an increment of 20 to 25 percent of fuel prices in 2022.

Oil Marketing Companies Association of Zambia (OMCAZ) says fuel pump prices are likely to be adjusted upwards following government’s announcement to remove subsidies on Petroleum products next year.

Speaking in an interview with Money FM News, Association President Dr. Kafula Mubanga noted that when the subsidy is removed, prices of imported products will be slightly higher, thereby triggering the increment.

Dr. Kafula stated that once this is done, there will be a direct effect on the economy as prices of essential commodities and transport will increase.

He said the country was the cheapest in the region about four months ago but it’s expected to have the uniform fuel pump price with the neighboring countries with the removal of fuel subsidies.

“We anticipate the product to increase to between 22 to 25 percent, because in the region that is almost the cost of the pump price,” he said.

Dr. Mubanga stated that the removal of subsidies would lead to an increase in profit margins for the Oil Marketing Companies.

He added that the move would also see a lot of people venturing into the sub-sector because of the reasonable and attractive profit margins.

Recently, Government disclosed that it will remove subsidies on petroleum products next year.