Energy and Water Development Minister Yamfwa Mukanga said diesel has since increased by 1 kwacha 63 ngwee per liter, Petrol by 1 kwacha 75 ngwee per liter and Kerosene by 1 kwacha 68 ngwee per liter effective mid night tonight.
Mukanga told a media briefing today that the price of kerosene and diesel will in the short term be equalized in order to prevent adulteration which has the potential to negatively affect the performance of the motor vehicle engines.
Mukanga said it has become necessary to remove the fuel subsidies in the prices of fuel in order to meet the current costs of delivering and supplying the products.
“In order to reduce the level of increase in fuel prices, the government has decided to remove the five per cent import duty chargeable on crude feedstock. Furthermore, the government has reduced the KR0.24 that was chargeable on petrol for the strategic reserves fund to KR0.15 on all products,” he said.
He said the fuel subsidies which were introduced by the MMD government to benefit the poor only benefited a few of the intended beneficiaries.
“Current evidence suggests that that the poor have benefited the least from this measure. Key consumers of fuel who are the mining industries and urban dwellers that are able to own vehicles have benefited most from this measure,” Mukanga said.
“Given the current economic conditions, the government was committed to improve the welfare of the Zambian worker as well as the most vulnerable and poor in our society,” he said.
He said in addition, taxes on fuel will in future be reflected in absolute and not percentage terms as a way to mitigate increases in the price of fuel.
The Energy Minister explained that the measure will however require changes in the law which will be considered at the next seating of parliament.