Zambia waives fuel duty to end shortage

The Zambian government has waived the five percent import duty on all refined petroleum products as part of its efforts to end the fuel drought the country has been experiencing after its only oil refinery was shut down for maintenance work.

The decision was made to reduce the cost involved in importing the commodity whose cost was higher than the supply from the refinery, chief government spokesperson Vernon Mwaanga was quoted by local media as saying in a statement issued on Tuesday night.

President Levy Mwanawasa summoned the cabinet to a crisis meeting on Tuesday in a bid to seek solutions to the fuel crisis, which has forced some copper mines to scale down their production.

Mwaanga said the measure would result in the government losing 10 billion kwacha (about 2 million US dollars) per month and petrol and diesel prices at filling stations would consequently go up, respectively, by 15 percent and 14 percent, according to local newspaper Zambia Daily Mail on Wednesday.

The spokesperson also disclosed that the government has formed a five-member ministerial committee to investigate the establishment of strategic fuel reserves to be used as a long-term measure to ensure supply during times of disruption.

The latest fuel shortage ensued two weeks ago after the Indeni Oil Refinery was shut down for maintenance work and was getting worse and worse as enterprises began cutting production and motorists sieged filling stations in long queues awaiting supply.

This is the second time within two months the country suffered the same problem. In August, the refinery was partly shut down which caused severe diesel shortage across the southern African country.

Source: Xinhua