Government Rules Out Fuel Price Subsidies

By Ellen Hambuba Government has ruled out using the country’s foreign exchange reserves to cushion consumers against rising fuel prices. Vice President MUTALE NALUMANGO said the reserves are a critical national asset for safeguarding economic stability and maintaining the country’s borrowing capacity. Mrs NALUMANGO said Government has no immediate plans to draw from the reserves to subsidise petroleum products, despite acknowledging the pressure that high fuel prices are placing on consumers. She noted that Zambia’s fuel prices remain comparatively lower than those in several countries within the region, including some coastal states. Speaking during Vice President’s Question Time in Parliament, Mrs NALUMANGO said Government has already taken measures to cushion consumers through adjustments to fuel-related taxes, including customs duty and Value Added Tax (VAT). She added that Government’s response to rising living costs extends beyond fuel prices, with the national budget placing emphasis on social protection programmes for vulnerable households. Mrs NALUMANGO cited initiatives such as the Social Cash Transfer Programme, Cash for Work and Free Education as key interventions aimed at easing financial pressures on households and supporting citizens facing economic hardship. She said these programmes form part of Government’s broader strategy to protect vulnerable citizens while managing economic challenges. Mrs NALUMANGO maintained that Government will continue pursuing measures to ease the cost of living without compromising the country’s economic security.