Africa-Press – Zambia. The Zambia Consumer Association (ZACA) has appealed to the government to put on hold the impending electricity tariff increase until the fuel price stabilizes on the international market.
Speaking to ZANIS in Kitwe today ZACA president Juba Sakala said government should put on hold its plans to increase the electricity tariffs so that people are not overburdened in view of the current escalating fuel prices.
Government has planned to increase the electricity tariffs this year in a bid to attain cost-reflective rates that will promote investment in the energy sector.
Mr. Sakala said combining the current escalating fuel prices and increased tariffs will be unbearable for consumers as such government should postpone the plans and observe how the cost of fuel will fluctuate on the international market.
“We know the escalating fuel prices is beyond government’s control but the government needs to show readership and find ways of shielding the consumers from external shocks such as this, we also need government to put on hold the impeding electricity tariffs increase for about three to four months until fuel prices stabilizes,” Mr. Sakala said.
He has since called on government to devise means of absorbing the impact of external economic forces so as to protect consumers. The Energy Regulation Board (ERB) yesterday adjusted upwards the pump prices of petroleum products by K4.54/litre for Petrol, K4.68/litre for Diesel and K3.93/litre for Kerosene.
Meanwhile, the Emerald and Semi-Precious Association of Zambia (ESMAZ) has urged government to introduce tax exemption incentives on the importation of mining equipment in order to attract investors in the mining sector.
ESMAZ president Victor Kalesha said it will be difficult to attract investors in the sector with the prevailing escalating fuel prices and the unstable local currency unless strategic incentives are introduced to ensure that investors recoup their investments.
“Government can allow free importation of mining equipment as investors would be assured of recovering their investments despite the high fuel prices and the unstable Kwacha, without such initiatives it would be difficult to attract investments in the mining sectors,” Mr. Kalesha said.
He noted that last night’s pronounced fuel pump price hike will make business tough as the cost of doing business will go up. He however noted that the new dawn government is already working towards bringing down the cost of doing business and to lower the general cost of living.
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