New fuel pump price will have minimal impact on small businesses

Alliance for Zambian Informal Economy Association (AZIEA) has said the recent adjustment in fuel pump price will have a minimal impact on the informal sector.

On New Year’s Eve, the Energy Regulation Board (ERB) adjusted the price of fuel downwards to K24.49 from K25.89 representing a 5.41 percent drop.

ERB board chairperson Reynolds Bowa said during a monthly fuel price review media briefing that low-sulphur diesel would be sold at K26.44 per litre from K27.38.

Kerosene reduced by K0.47 to trade at K19.98 from K20.45 per litre in December as A-1 Jet fuel also reduced to K22.63 from K23.23 per litre.

Also read:https://www.zambiamonitor.com/govt-plan-to-remove-25-excise-duty-on-petrol-commendable-economist/

AZIEA president Poster Jumbe said the impact on the informal sector that depends on public transport was minimal.

“The impact will be very minimal if not nothing considering that when ERB increased fuel prices, transporters did not adjust fares, so we expect the status quo to be maintained,” Jumbe said.

He said in an interview in Kitwe on Monday that most of the people in informal settings use public transport to go for work and purchase their merchandise and the transport costs depend on transporters.

Jumbe stated that the Government should in future reconsider its position on monthly price reveals and revert most of the fuel subsidies to avoid collapsing the informal sector.