By 
The Zambia Chamber of Commerce and Industry (ZACCI) has commended President Hakainde Hichilema for directing the Ministry of Energy Permanent Secretary, Peter Mumba, to conduct a comprehensive review of the monthly fuel pump pricing system.
During the swearing-in ceremony, Hichilema had tasked newly appointed Mumba, to come up with a more stable fuel price review period because the current monthly review of fuel pump price had unbearable impact on the economy.
The Chamber in a statement issued in Lusaka on Wednesday said the directive demonstrated a sincere dedication to tackling the challenges arising from fluctuating fuel prices, which had a destabilizing impact on the economy.
“The ZACCI eagerly anticipates engaging with the relevant authorities, including the Energy Regulation Board, to discuss and implement this recommendation in the best interests of our nation’s economy,” read the statement.
ZACCI said while taking cognizance of the necessitating factors, from the onset, it expressed concern about the economic implications of the measure, especially for businesses.
“Currently, the global economy is under serious macro-economic turbulence, which have impacted the prices of major commodities such as crude oil,” it indicated.
The Chamber indicated that being an import-dependent country, Zambia had witnessed frequent fluctuations in fuel prices.
It stated that the monthly pricing index had created uncertainty and made it challenging for businesses to plan and project their cashflows.
“In light of this, the Zambia Chamber of Commerce and Industry has and continues to advocate for adjusting the fuel price review cycle to every three months,” the Chamber indicated.
It indicated that transitioning to a quarterly review cycle would undoubtedly offer businesses a more conducive environment for financial planning, pricing strategies, and investment decisions.
The Chamber indicated that the move was of paramount importance for the economic stability and growth of the country.
“Furthermore, the ZACCI believes that having predictable fuel prices will empower businesses to make well-informed decisions, reduce operational risks, and bolster the prospects for economic growth,” it said.
It argued that the transformation would foster a more stable business environment, attract investments, and promote sustainable economic development.
In January 2022, the Energy Regulation Board (ERB) implemented the monthly review of the fuel pricing index in Zambia.
The measure was necessitated by the high fuel debt and constrained fiscal space that continues to impact government social spending.
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