THE Energy Regulation Board (ERB) has with immediate effect started implementing Uniform Petroleum Pricing (UPP) for diesel, petrol and kerosene, a policy that has seen fuel prices in rural areas being reduced.
And Energy Minister Kenneth Kaonga has said that the UPP, which will be implemented on cross-subsidisation, will contribute to stimulating economic development and raise the standards of living in rural areas.
At a press briefing held at the ERB offices in Lusaka yesterday, board vice chairperson Ida Nkhoma said the uniform pump prices are K7,639 for petrol, K6,999 for diesel and K5,008 for kerosene per litre.
Ms Nkhoma said the uniform petroleum prices will relate to petrol, diesel and kerosene only.
She said in light of this change, the cost Plus Pricing Model will continue to be used to determine the wholesale prices of refined petroleum products, while UPP will be applied on pump prices in order to cushion the rural and outlying areas against high fuel prices.
“The ERB will ensure that these changes are strictly adhered to by all retailers of petroleum products with immediate effect,” Ms Nkhoma said.
At a separate press briefing at his office in Lusaka yesterday, Mr Konga said that in order to cater for differences in the cost of delivering fuel between urban and rural areas, the UPP mechanism will spread additional costs of delivering fuel to rural areas among all fuel consumers.
“Government desires to ensure that rural areas have access to reliable and affordable petroleum products. As a result stimulation of economic development will rise in these areas and people’s standards of living will improve,” he said.
Mr Konga said consumers of petrol, diesel and kerosene closer to Indeni Oil Refinery in Ndola will pay slightly more than they did in the past so that rural consumers of petroleum products could reap from the benefits of uniform pricing.
He said this is the same principle that Zesco has been using for the pricing of electricity for consumers at different locations from power generation stations.
Mr Konga said high levels of poverty in rural areas prompted Government to implement the UPP.
He hopes that lower fuel prices in these areas will spur more economic activities among rural farmers, mining companies and cottage industries that have been negatively affected by the high fuel prices because of their being far from oil refinery.
Government expects that farmers in rural areas will cultivate more land and contribute to food security.
Mr Konga said the cost of fuel is influenced to a large extent by the distance from the refinery in Ndola to the point of consumption; hence pump prices varying across the country. This has deprived rural areas of the much-needed investment.
The minister said that to address this, the new National Energy Policy adopted by Government in 2008 to improve petroleum pricing in rural areas seeks to address the matter by setting up an incentive mechanism to mitigate high fuel prices in remote areas.
Mr Konga said the implementation of uniform petroleum pricing was a long sought national aspiration because other stakeholders have also emphasised the need for the National Energy Policy to address the issue.
He said oil marketing companies (OMCs) have been
consulted on how to implement the UPP to benefit the country, and expects all fuel consumers to support the noble programme.
Mr Konga said his ministry will address any teething problems that may occur during the early days of UPP implementation.
The current fuel prices for Kasama, which is the furthest point from the refinery, are K8,390 for petrol, K7, 639 for diesel and K5, 598 for kerosene.
In Ndola, which is closest to the refinery, the current prices are K7, 461 for petrol, K6,786 for diesel and K 4,798 for kerosene.
Consumers in Lusaka have been paying K 7,573 for petrol, K6, 898 for diesel and K4,893 for kerosene.
All consumers will now pay K7, 639 for petrol, K6, 999 for diesel and K5, 008 for kerosene per litre.
Fuel in Zed is still very expensive at $5.80 a Gallon(3.8L). This is very unfortunation. We should build more oil refineries and maybe install some pipelines from Angola.
Fuel in Zed is still very expensive at $5.80 a Gallon(3.8L). This is very unfortunate. We should build more oil refineries and maybe install some pipelines from Angola.
I guess the move demand critical assessment to monitor effects to manufactures, mining companies and other industries in the negative affected areas. For the rural zed its good news, i hope it translates to target economic contribution from their.
PF losing the rural vote already. More sophisticated way of buying votes than mealie meal, sugar and vitenge.
Is it true that Kasama is the furthest point from the refinery.How about Nakonde? Mpulungu? This information is very misleading. I can see that implementation of this whole thing lack seriousness. It is a political move aimed at gaining support from the rural electorate. we shall wait and see!!!
Petrol prices are constantly going up world wide and Americans are trying to find an alternative to oil. Here in the UK we expect fuel hikes any time soon.
#6 RB has no interest in such infomation, after all zambia produces so much oil and so they can manage to have uniform prices of fuel everywhere, like Angola and Saud Arabia. Kantemba President!!
5 VJ, You can say that it’s an RB political gimmick if you are ignorant. If you care to read, you will see that this uniform price is there in the revised National Energy Policy of 2005. The difficulty has been to find a workable formula but thanks to the hard working government, we are there finally. We have to start from somewhere. Illiteracy and ignorance are expensive, ba VJ and your colleagues. Please try to read widely, especially when you want to open your mouth.
The President in his speech announced the egalisation of fuel prices across the country.
This has the effect of RAISING fuel prices in the Copperbelt (PF stronghold) were they used to be low, and lowering them in the rural areas (where most VOTERS live).
Do you feel an election coming on?
This will boost the agriculture sector. This is also in line with the diversification of the economy by boosting the agriculture sector.
This looks good for zambia.
There is no fuel slashing here at all. What they have done is literally increase the price of fuel through out the country. They increased fuel prices on the Copperbelt and Lusaka and reduced it were they know that consumption is very low. How many cars are in Mfuwe or Kaputa or Shangombo? Compare to how many consumers are affected in Lusaka and Copperbelt by this increase in these areas. This will catch up with Banda next year. Banda is literally fooling himself here or probably few cadres here on LT.
Fuel prices in Zambia should be double to make life better.Prices are too low.Zambians pay dearly for it just to get lower prices- in health costs from smog,leaded fuel which is toxic,too many cars discouraging development of mass transit,many foreign fuel retailers like kobil taking profits to other countries and lack of homemade solutions to research and develop alternative energy.So i say make prices even higher-double or triple.
Since when did Kalos2121 start attempting at discussing issues besides genocide. I must be in some parallel universe. Anyway I encourage “Mr. Genocide” here (who is unwilling to apologize nor recant his genocidal rantings) to do some research on cross subsidization.
@ #13 Enka Rasha
Govt is showing interest in bio-fuel. So far, the target I have read on is that about half of the country’s fuel needs should come from bio-fuel.
#14, Issues yama. If you cannot discuss issues, what is the use of posting nonsense like you just did? Bushe you guys in MMD you do not use mirrors that way you can check how foolish you look? You will never silence me, if that is your objective. Actually you are in some parrallel universe considering that you are a cadre who believes Banda will bring development through corruption and corrupt govt. Stop fooling yourselves. If your RB / MMD government does not know that Bitumen is a by product of crude oil, and they go and buy processed fuel for consumption, forgetting that their roads it to be paved, what makes think they will build plants for bio fuels? You say you read somewhere, where are they going to build the processing plants? Stop lying. Cadre mentality.
@ #16 Kalos2121
I will echo the same statement I made last time, “I will never discuss issues WITH YOU, not until you recant or apologize for your genocidal rantings
Have a good day.
Oh and to add some whip cream on your humble pie,
German firm plans to set up biofuels plant in Zambia
A German firm has shown interest in opening up a biofuels plant in Zambia, the Zambia News and Information Service (ZANIS) reported on Thursday.
Man Ferrostaal, a firm specialized in biofuels, plans to invest 500 million U. S. dollars in the setting up of the plant in the southern African country, ZANIS said.
Company Vice President Horst Weretecki said in Lusaka that the five-year project was expected to commence in the next six months, adding that during the six months the company will study the local demand for biofuels and hold discussions with various stakeholders.
cont from #18
The vice president disclosed that once opened, a lot of Zambians are expected to benefit as the plant will create job opportunities for local people.
Weretecki also said there was a conducive environment in the energy sector in Zambia that needed to be exploited, adding that for various sectors to grow they depend on the energy sector.
The development of the energy sector would allow the southern African country to overcome challenges that accrue when importing crude oil from the international market which requires a lot of foreign exchange, Weretecki said.
# 17, do you know how shallow you sound here? You responded to my posting and I respond to your baby talk (in MMD you call it substance), what do you next? Dodge. I will never dodge your rants as long as I know I have substance and knowledge of what I am discussing. All you are discussing here is not true.
Southern Africa does not mean Zambia. So, in your wildest dreams, as a cadre, you think Southern Africa is Zambia. Did you read what you just posted? The man clearly stated Southern Africa, but your cadre reporters translate that to Zambia and foolishly, you parrot exactly what a cadre reporter from MMD dictated mouth piece stated. What substance is there?
@ #20 Kalos2121
The article said “Southern African Country” and not just Southern Africa. Zambia is in Southern Africa hence the term “Southern African Country.” How I wish the respectable blogger Maestro was here to teach you basic English because it seems with your genocidal thoughts, you have forgotten how to understand it. It’s either that or you have been planted by the PF/Mwembe to misinform.
Southern Africa does not mean Zambia but Zambia is in Southern Africa. Read the article again.
Here is another excerpt I will post.
Jatropha as biodiesel in Zambia
The Zambia Development Agency (ZDA) and MAN Ferrostaal AG of Germany have signed an integrated biofuel industry Memorandum of Understanding (MoU) aimed at establishing Jatropha Curcas as a feedstock in Zambia.
The MoU was signed in June this year by ZDA Director-General Andrew Chipwende and MAN Ferrostaal Representatives. The planned integrated biodiesel industry will comprise a biodiesel refinery, oilseed crushing plants and Jatropha Curcas plantations. The MoU will facilitate the securing of finance, as well as Jatropha seed feedstock for the biodiesel refinery and the acquiring of 150 000 hectares of land for the project by the two parties. [End Excerpt]
Mr Capitalist-That is a good project and i like it as it will involve farmers.Long term zambia needs to build and run own plants with local knowhow & inputs as this project still involves foreign firms(german) just like Kobil that takes profits to kenya.This ensures foreign exchange stays in zambia and put a stop to zambian co’s(like zamtel)being in foreign hands while zambia gets zero.It will help zambia’s image too after what i read on skyscrapercity about zambians.(skyscrapercity>africa>oasis>now its zambias turn) It’s sad what others have to say about zambia’s business acumen.
All this is happening because of Government’s good governance. Thanks to RB
On “And Energy Minister Kenneth Kaonga has said that the UPP, which will be implemented on cross-subsidisation, will contribute to stimulating economic development and raise the standards of living in rural areas” I commend MMD GRZ Administration for this new policy since I have not heard of cheap sugar in Mazabuka as compared to other parts of the country — although I am open to learn from those who may have more on this sugar and Mazabuka based Zambia Sugar plc issues.
Thus, I feel sorry for PF which has condemn the MMD for this good step of assisting us who pay so dearly for fuel when I visit rural areas where I come from as well as drive around Lusaka from time to time. I hope the mighty UPND Team will welcome this move by MMD.
Be blest all.
_
Matt 6:33 But seek ye…
This is One Zambia One Nation One Price,
All that is as result of the working government of Rupiah Banda.Only those with no intellectual capacity will no see these developments under RB.This man will turn up as one of the best presidents to have ruled this country.The good thing about this government is their ability to think.They are spending alot time thinking which is good for this country.This explains why of late there is systematic way of doing things.RB for 2011
This is Zambia. The Real Africa.
# 27. Your analysis is superb. RB’s listening government is doing what we have never seen before. Travelolling from Nangweshi to Shangombo only takes 1 hour now. The road has been perfected by RB. South of chilenje south has already received attended road attention. This time it is not graded but tarred. RB is yet to do some more good surprises
Sata talked about this in the previous elections, especially 2006 elections or even earlier. He was comparing why the prices of Coca Cola and Mosi are uniform every where yet the price of fuel changes from town to town. Kashi PF has got policies which the MMD are now copying now.
However good this may be,it has to be done in manner that will benefit all,oil marketing firms have a problem distributing oil products to all regions because of the bad road network and related costs so hopefully these costs have been looked into so that this doesn’t leave the oil companies worse off then we start to see them leave Zambia one by one.
The problem in Zambia is that everything is centralized,it would have been cheaper if ZNOC was maintained and if it had depots in all major towns of each region where oil marketing firms purchased from instead of all of them going to Ndola then redistributing,it is so costly. The govt shud have come up with limits on prices so that there’s competition in the sector,others wud want to be slightly cheaper to get more customers.
So far I am impressed with Banda’s Administration. Iam not new to this country, I have seen the rule of Dr.Kaunda with Ministers who crossed over to Chiluba’s Government. I have also seen Chiluba’s administration with ministers from Kaunda’s Governmment some of whom are still in this Governmment and others in the opposition.
It is important to show appreciation where it is due. No government apart from God’s Governmment will bring manna here especially when we concentrate on recycled leaders who have not been able to advise previous governmments on how to govern. Do not follow mob psychology. Analyse issues from historical background and look to the future with proper vision.That is intelligence.
This is very worrying