THE current fuel shortage should be addressed quickly to avoid jolting the country's economy, Bank of Zambia (BoZ) governor, Caleb Fundanga has said.

Dr Fundanga said on Radio Phoenix monitored in Lusaka yesterday that the fuel shortage may lead to a rise in the cost of production and derail the revised inflation target of 12 per cent set for the end of this year.

"Authorities should actualise the measures taken so that the situation is normalised, otherwise this will have a devastating impact on the economy," Dr Fundanga said.

Apart from the inflation target of 12 per cent, the Government also projected to achieve year-end economic growth of 4.3 per cent in 2009.

Meanwhile, Finance and National Planning Minister, Situmbeko Musotwane has said the Government would this week sign a statutory instrument to waive import duty on fuel to allow oil marketing companies (OMCs) source finished petroleum products at affordable prices.

In an interview in Lusaka yesterday, Dr Musokotwane said once the statutory instrument was signed, it would allow the OMCs to bring in petroleum products and help avert the fuel shortage.

He said the decision to suspend the 25 per cent duty on imported fuel was done in good faith and that the decision should be supported by all Zambians interested in seeing the situation normalise.

Dr Musokotwane said the decision to waive duty on fuel should not be politicised and reiterated the Government's commitment to ensuring that fuel supply was normalised to enhance productivity.

"The recently suspended 25 per cent import duty on fuel will be implemented before the end of the week and we feel this should not be politicised," he said.

Energy Minister, Kenneth Konga said the Government had decided to waive duty during the period of the shutdown of Indeni oil refinery.

The refinery was closed for maintenance on Thursday last week and will reopen during the first week of November.

Meanwhile, the shortage of petrol in Lusaka and other parts of the country has persisted with most filling stations being besieged by motorists.