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Thursday, February 2, 2023
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HomeNewsOIL MARKETING COMPANIES EXPECT FUEL PUMP PRICE TO RISE

OIL MARKETING COMPANIES EXPECT FUEL PUMP PRICE TO RISE

Oil Marketing Companies Association of Zambia (OMCAZ) has that that it is projecting at least a 2 percent upward adjustment in fuel pump prices at the impending review following the rise in crude oil prices on the international market to $97 per barrel.

The OMCs also cited the slight decline in the strength of the kwacha against major convertible currencies in addition to the Russian-Ukraine tensions that have negatively affected the price of crude oil on the international market.

OMCs Association President Dr. Kafula Mubanga has since suggested that government considers re-introducing fuel subsidies to reduce prices of diesel and petrol on the market, encourage private investments into fuel pipelines including between Mozambique and Zambia in order to cut down on the cost of transportation by almost 60 percent.

Dr. Mubanga has disclosed that OMCs have already secured over $25 million to invest in the creation of a pipeline between Mozambique and Zambia to lower the cost of transportation but also calls on government to consider the option of regional agreements to start accessing finished petroleum products directly from India.

And Energy Expert Boniface Zulu says the increase in crude oil on the international market is likely to affect Zambia. Commenting on crude oil price that is likely to hit $100 per barrel by the end of this week according to experts, Mr. Zulu says it is high time Zambia starts embracing electric mobility so as to cushion the over dependency on fuel.

 

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