Consumer Unit Trust Society (CUTS) International Zambia says plans by the Zambian Government to sign a Memorandum of Understanding with the Angolan Government to construct an oil pipe line from Angola into Zambia will have an impact on the prices of fuel.

Government has disclosed that all legal procedures to establish an oil pipe line from Angola into Zambia have been concluded.

Energy Minister Mathew Nkhuwa said the Memorandum of Understanding between Zambia and Angola will be signed on October 12, 2018.

CUTS International Zambia Center Coordinator Chenai Mukumba says there is no doubt that this move will result in cheaper fuel which in turn will bring many economic gains for the nation.

Ms Mukumba says this is because importation costs will be low thereby making it easy to reduce the prices of the fuel.

She has disclosed that her organization in partnership with the Zambia Institute for Policy Analysis and Research (ZIPAR) last year did conduct a study on the implication of fuel prices and that it was established that the change in fuel prices has an implication on transportation.

She says if fuel prices are adjusted upwards, goods and services also go up due to transportation costs.

Ms Mukumba is confident that if this comes to fruition, there is no doubt that the country will benefit economically.