3 November 2009
editorial
LAST week's announcement of an upward adjustment in fuel prices by the Energy Regulation Board (ERB) and the later withdrawal seems to have created confusion and uncertainty in the industry.
Just when the flow of fuel in the country was improving, the country is facing another shortage, which can be attributed to the conflicting statements issued by the ERB.
The announcement by ERB was ill-timed, especially that it was coming just after a serious shortage of petrol in the country.
One has every reason to believe that some oil marketing companies (OMCs) are now hoarding the commodity in anticipation of a price increase while some motorists are panic buying to store the fuel.
Since the fuel crisis began some two weeks ago, the Government put measures in place to avert a shortage and large volumes of both diesel and petrol have been imported.
Despite all these measures, the shortage is not abating and one cannot be faulted to believe that some dealers are hoarding and waiting for the price to go up.
We appeal to the Government to find a long-term solution to this fuel crisis, which happens every time Indeni shuts down for maintenance.
There is need to invest in more strategic reserves around the country to complement Indeni's limited storage capacity because fuel consumption has increased due to the high number of vehicles that have come in.
OMCs have opportunistic tendencies and will use every means, right or wrong, to make a huge profit because they are in business.
The persistent shortage of petrol and diesel has negatively affected the economy and the earlier the crisis is resolved the better.
Fuel drives the engines of the economy and already, the Zambia National Farmers Union has warned that if the shortage persists, the agricultural sector will be affected as farmers depend on diesel to operate their machinery like tractors.
There are other sectors like the manufacturing and transport sectors whose operations risk grinding to a halt if the current shortage continues.
Hopefully, with Indeni resuming operations this weekend, the situation will return to normal and the long queues of vehicles that have characterised filling stations in the past days will be a thing of the past.
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The Zambian governments completely inept handling of the refinery shutdown and resultant fuel shortages is bad beyond belief - why have the Energy Minister and Permanent Secretary not both been sacked for their responsibility for this crisis. As usual if you are a mate of Rupiah's you are safe no matter what you do. This whole saga started many months ago when the Zambian government would not provide funds for urgent maintenance at the refinery or take early action to ensure fuel supplies. As for the ERB fiasco - mickey mouse could do a much better job than the current ERB.