As President Hakainde Hichilema embarks on his […]

As President Hakainde Hichilema embarks on his second term, a Zambian energy expert is calling on the government to revert to a quarterly fuel price review system, citing the mounting pressures of global oil price volatility and exchange rate fluctuations, especially on local consumers.

 Speaking in an exclusive interview with the Zambian Business Times (ZBT), Engineer Bornface Zulu, a renowned energy expert, clean energy advocate, and New Energy Science and Technology engineer, emphasized that Zambia’s current monthly fuel price review mechanism has exposed ordinary citizens to frequent and unpredictable cost increases.

He noted that the monthly adjustments, while reflective of real-time market dynamics, have made it difficult for individuals and businesses to plan, leading to instability in the cost of living and operational expenses.

 He argues that a quarterly review cycle would help cushion the impact of global oil price spikes and currency depreciation, providing much-needed predictability and relief for Zambians.

 “A longer review interval offers a buffer, allowing the government to implement short-term stabilization measures and absorb temporary shocks without immediately passing them on to consumers,” Zulu said.

Zulu also pointed out the vulnerability of the petroleum sub-sector to global oil price fluctuations and shifts in the Kwacha-to-dollar exchange rate. He noted that with Zambia’s adoption of cost-reflective tariffs for petroleum products, international market changes now have an immediate impact on local fuel prices and, consequently, on the daily lives of ordinary Zambians.

Zulu stressed that more robust buffers and policy measures are needed to shield citizens from these external shocks and ensure a stable, secure energy future.

This direct exposure, he warned, is undermining efforts to ensure energy security and protect citizens from external economic shocks.

 As President Hichilema assembles his new cabinet and outlines his administration’s energy agenda, Energy Expert Zulu is urging a renewed focus on policy reforms that prioritize price stability and long-term security for ordinary Zambians.

 Meanwhile, Zulu added that Zambia’s energy sector is at a critical juncture, requiring further development in policy, regulatory procedures, and project implementation.

 These improvements are essential to safeguarding Zambia’s energy security and driving sustainable economic growth.

 He further noted that while the government has made significant strides, including the introduction of an open access policy and net metering to boost electricity access and attract investment, more comprehensive action is required.

Article by Tyndale Muchiya