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Energy enthusiast, Johnstone Chikwanda, has advised government to activate the bilateral agreements it had with Angola, Nigeria and Saudi Arabia, with a view to paving way for government-to-government (G2G) facilitation of fuel procurement.
Chikwanda said this should act as part of short term measures to the fuel challenge the country was faced with and should be based on a mutually agreed price.
In a statement issued in Lusaka on Saturday, Chikwanda said this should come with a clear framework for periodic price reviews.
He said the private sector should be allowed to import from countries where government had bilateral agreements.
“Furthermore, we need to conclude and implement the biofuels policy by dealing with bottleneck issues which have prevented the implementation of biofuels for over 10 years,” Chikwanda said.
In addition, Chikwanda had called for the speedy conclusion of the Strategic Petroleum Reserve (SPR) policy to guide and mentor how the strategic fuel reserves would be managed and discharged in the market to mitigate short term challenges.
He said there was need to acknowledge the formidable challenges the global fuel markets were experiencing and the cascading impacts on oil importing countries going into next year
“The situation is expected to intensify, hence the need for consumers to brace for difficult time unless there is a de-escalation in the underlying shocks in the global markets,” Chikwanda said.
He said the recent suspension of fuel exports by Russia, a leading exporter of fuel had further compounded the global inventory levels thus posing further predicament, presenting a dire challenge that was difficult to comprehend given Russia’s unprecedented policy direction.
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Chikwanda noted that the continued conflict between Russia and Ukraine posed a significant threat to fuel prices, regardless of the local currency’s status, especially during the ongoing economic recovery efforts.
“To this end, policy makers are encouraged to analyze options. It is worth noting that in response to these critical circumstances, the government has continued to uphold a 25 percent customs duty waiver on fuel,” he said.
Chikwanda said the decision underscored government’s unwavering commitment to alleviating the burden on its citizens adding that without this proactive measure, fuel prices would have already surpassed the K30 mark.
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