ZACCI Commends President Hichilema’s Call for Reviewing Fuel Pricing Cycle

The Zambia Chamber of Commerce and Industry (ZACCI) has commended President Hakainde Hichilema for urging a thorough review of the monthly fuel pricing cycle in Zambia. 

In a statement issued by the Zambia Chamber of Commerce & Industry Secretariat, this move comes in response to concerns raised since the Energy Regulation Board (ERB) introduced monthly reviews of the fuel pricing index in January 2022, driven by the country’s high fuel debt and constrained fiscal space, impacting government social spending.

ZACCI expressed concerns from the beginning about the economic implications of this measure, especially for businesses. 

Zambia, being dependent on fuel imports, has experienced frequent fuel price fluctuations due to the global macroeconomic turbulence affecting major commodities like crude oil. 

The monthly pricing index has created uncertainty, making it challenging for businesses to plan, project cashflows, and make strategic decisions. Therefore, ZACCI has advocated for a transition to a quarterly fuel price review cycle.

A quarterly review cycle would provide businesses with a more stable environment for financial planning, pricing strategies, and investment decisions, contributing to economic stability and growth.

Predictable fuel prices would enable businesses to reduce operational risks, attract investments, and promote sustainable economic development.

ZACCI appreciates President Hichilema’s directive to the Ministry of Energy’s Permanent Secretary, Peter Mumba, to conduct a comprehensive review of the monthly fuel pump pricing system. 

This demonstrates the government’s commitment to addressing the challenges stemming from fluctuating fuel prices that have had a destabilizing impact on the economy. 

ZACCI looks forward to engaging with relevant authorities, including the Energy Regulation Board, to discuss and implement these changes.