HH Seeks Solutions to Monthly Fuel Price Adjustments

By Ellen Hambuba President HAKAINDE HICHILEMA has called for solutions to Zambia’s monthly fuel price adjustments. President HICHILEMA has noted that frequent changes in fuel prices are distorting business planning and complicating economic management. He has explained that Zambia needs to explore a more predictable fuel pricing system that will give businesses greater certainty and support effective economic planning. President HICHILEMA said this in the United Arab Emirates during a meeting with ADNOC Global Trading Chief Executive Officer, AHMED BIN TALITH. He appealed to ADNOC Global Trading to work with Zambia in addressing the factors driving fuel prices, namely the international oil prices, exchange rate and transportation costs. President HICHILEMA also disclosed that Zambia is also considering moving away from monthly pump-price adjustments to longer pricing periods of 2 or 3 months. He explained that this would help businesses plan better instead of constantly having to adjust to changes in fuel prices, however emphasising the need for security of fuel supply. And Mr BIN TALITH said his company is looking beyond fuel supply, in investing in Zambia’s petroleum infrastructure, and helping position the country as a regional fuel hub. Mr BIN TALITH said ADNOC is exploring opportunities to support local companies, such as Indeni in managing and expanding their terminals, while improving operational flexibility and capacity. He said increased investment in Zambia’s fuel infrastructure could secure the country’s domestic fuel demand while creating a surplus that could be supplied to neighbouring countries. Mr BIN TALITH added that ADNOC’s interest is based on its previous experience of supplying Zambia, particularly during difficult periods, and its record of honouring contracts in East Africa. He stated that ADNOC is also prepared to pursue a long-term partnership with Zambia rather than operating on short-term, month-to-month arrangements.