Energy Expert Chris Mapulanga says the removal fuel subsidies and reverting to monthly fuel price reviews has had profound implications on the national economy, consequently affecting the daily lives of its citizens.
Mr. Mapulanga notes that the critical question that people are asking is why the Zambian government has first prioritised constructing sufficient fuel reserves before implementing such a drastic measure, noting that there was first the need to begin stabilising fuel pump prices and ensuring security of fuel supply.
He points out that one of the primary objectives behind removing subsidies on fuel was to stabilise fuel pump prices and ensure long-term security of the commodity and by taking this step, the Zambian government aimed to reduce its over-dependence on volatile international oil markets.
Mr. Mapulanga points out that removing fuel subsidies in a low-income country such as Zambia can have both negative and positive consequences, noting that it can lead to an immediate increase in fuel prices, putting additional strain on the already burdened finances of the population.
He is of the view that this can exacerbate poverty levels and impact access to basic necessities but he advises that moving forward, the Zambian government should prioritise the construction of sufficient fuel reserves as a means to mitigate the impact of volatile oil markets.
