Africa-Press – Zambia. Reports indicate that the Minister of Energy, Hon. Peter Kapala has removed Energy Regulation Board Chairperson Eng. Reynolds Bowa and Director General, Mr. Yohane Mukabe.
This week, ERB increased the price of fuel at pump station by a whopping K7.50 for Petrol.
ERB also approved multi-year tariff increases for ZESCO and North Western Energy Corporation.
The wild increases are not surprising as they reflect the turmoil in the economy with a volatile exchange rate market, rising inflation rate and the huge debt owed to oil marketing companies, that has risen from $400million as at August 2021 to $800million.
So I’m surprised that the duo at ERB can be removed as they acted within their statutory powers looking at the environment.
You can’t wish low prices when you have abandoned primary state participation in the oil sector.
If they did something irregular, Kapala must order the reinstatement of old prices for fuel and electricity tariffs.
Further the ultimate solution to low and stable prices remain TAZAMA and INDENI Oil refinery.
When you import a crude oil tanker, it would provide cheaper fuel and stability of prices for 3 months.
Our friends have turned TAZAMA into a finished product carrier and INDENI into a methanol/alcohol blender.
Further, INDENI has been converted to an oil marketing company!
These decisions cannot mitigate or help control fuel prices.
The chaos at ZESCO is being driven by greed, corruption, tribalism and extremely poor management.
These are national strategic assets that guaranteed national oil, fuel supply and energy security thereby guaranteed national security.
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