ENERGY Expert Bornface Zulu says the recent adjustment in fuel pump prices must be understood within its proper context of global market instability. Mr Zulu noted that for several months, the government deliberately absorbed substantial revenue losses by suspending excise duty and Value Added Tax (VAT) on fuel in order to protect citizens from rising […]

ENERGY Expert Bornface Zulu says the recent adjustment in fuel pump prices must be understood within its proper context of global market instability.

Mr Zulu noted that for several months, the government deliberately absorbed substantial revenue losses by suspending excise duty and Value Added Tax (VAT) on fuel in order to protect citizens from rising global oil prices and exchange rate pressures.

Mr Zulu observed that had the intervention not been implemented, Zambians would have been paying significantly higher fuel prices much earlier.

He also observed that while the increase in fuel prices will place pressure on the cost of living, the government delayed and reduced that burden for several months.

 “The increase of over K6 per litre is significant, but continuing the tax suspension indefinitely would have been financially irresponsible as the government sacrificed billions of kwacha in revenue,” he stressed.