LUSAKA, April 1 (Xinhua) -- The Zambian government has declared the current fuel supply situation an emergency amid ongoing tensions in the Middle East.
On Tuesday, Minister of Information and Media Cornelius Mweetwa said in a statement that the cabinet has approved zero-rating of value-added tax and the suspension of excise duty on petrol and diesel imports for a period of three months.
"These measures are short-term interventions to mitigate the impact of escalating international crude oil prices on Zambia's economy," he said.
Mweetwa, also the government spokesperson, noted that the government is concerned about the continued conflicts in the Middle East, which have disrupted global oil supply chains, resulting in rising international fuel prices and upward pressure on domestic pump prices.
He said petrol pump prices for April would have been significantly higher had the government not taken the measures, which could have had negative consequences on the cost of living.
He added that the government stands ready to take further action where necessary to protect the economy and the welfare of citizens.
On Tuesday, Zambia's energy regulator announced an upward adjustment in fuel pump prices. Under the new pricing structure, petrol has increased by 2.03 percent, while diesel has risen by 28.09 percent.
Kelvin Chisanga, a social economist, said the latest upward adjustment in fuel prices reflects a strong cost-push shock in Zambia's pricing system.
"In essence, this fuel price adjustment is more than a sectoral issue; it is a broad economic shock affecting households, businesses, and macroeconomic stability, underscoring the urgency for coordinated policy and structural reforms," he said. ■
