Thursday 24 February 2011

ZAMBIA NATIONAL FARMERS UNION HAS EXPRESSES DISAPPOINTMENT WITH THE RECENT FUEL PRICE INCREASE

THE ZAMBIA NATIONAL FARMERS UNION HAS EXPRESSED DISAPPOINTMENT WITH THE RECENT FUEL PRICE INCREASE WHICH ON AVERAGE AMOUNTS TO APPROXIMATELY 13PERCENT STATING THAT THIS WILL DRIVE PRODUCTION COSTS UPWARDS LEADING TO COST PUSH INFLATION.
ACCORDING TO A PRESS STATEMENT MADE AVAILABLE TO RADIO PHOENIX TODAY IN LUSAKA, ZNFU PRESIDENT JARVIS ZIMBA SAYS THE REASONS WHICH HAVE BEEN ADVANCED FOR THE INCREASE IN FUEL IS UNJUSTIFIED BECAUSE THE COUNTRY HAS PUT ENOUGH MEASURES SUCH AS THE STRATEGIC RESERVE FUND TO HANDLE THE TEMPORAL INCREASES IN INTERNATIONAL FUEL PRICES AND SHIELD THE ECONOMY IN TIMES OF TEMPORAL SHOCKS.
MR ZIMBA HAS POINTED THAT IF ANYTHING, DURING THE PERIOD UNDER REVIEW, THE NET EFFECT OF THE APPRECIATION AND DEPRECIATION IN THE DIFFERENT MONTHS SHOULD HAVE RESULTED INTO A MINIMAL OR NO INCREASE AT ALL ON FUEL PRICES.
HE HAS ADVISED THAT THE ENERGY REGULATION BOARD SHOULD DEVISE A MECHANISM BY WHICH THE BENEFITS OF REDUCED OIL PRICES IN THE INTERNATIONAL MARKETS COULD BE TRANSLATED INTO REDUCED PUMP PRICES TO BENEFIT THE ECONOMY.
MR ZIMBA SAYS EVEN WHEN A CARGO HAS ALREADY BEEN PROCURED, NEGOTIATED CLAUSES COULD BE INCLUDED TO RESULT IN A WIN-WIN SITUATION FOR THE CARGO MERCHANTS AND THE COUNTRY.

PUBLISHED BY AUGUSTINE M SICHULA

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