By Jane Chanda
Chipata mayor George Mwanza has disclosed that residents in the city have been flocking to the neigbouring Malawi across the border to access cheaper fuel which is fetching between K16 and K17 for their daily use and re-selling on the black market.
And Oil Marketing Companies Association of Zambia (OMCAZ) president Dr. Kafula Mubanga has observed that Zambia’s expensive fuel prices of almost K35 as compared to Malawi were unacceptable.
In a statement to Daily Revelation, Mwanza stated that the cheaper fuel from Malawi was posing safety concerns and causing low sales at Chipata service stations. He stated that in the last two months, fuel traders sold the commodity on the black market in plastic containers, a situation that raised safety and quality concerns.
Mwanza explained that for many years, Malawians across the Mwami boarder with Zambia accessed their daily groceries, banking services including other daily consumables from Chipata and that there was a very close relationship between the two countries including inter-marriages.
He stated that Malawi would be going for general elections in September and the government there had probably subsidised most commodities including fuel to reduce the purchase burden on its citizens.
“And I am sure this will (or may) continue up to after elections (just like many governments sometimes do). So right now a litre of fuel is selling at about K16 to K17, Zambian Kwacha equivalent while in Zambia a litre of petrol is slightly above K33,” Mwanza sated, adding that Chipata filling stations had been recording the lowest sales since most of their customers (motorbike riders) had been accessing the fuel from Malawi.
He urged the Energy Regulations Board to join hands with civic leaders in engaging citizens on safety issues and advise on the need to use metallic containers to access fuel in line with the laws,” stated Mwanza stated, as he urged citizens to prioritise self and community safety in their daily activities.
And an interview yesterday, Dr. Mubanga attributed the price disparity to Zambia’s flawed cost model.
“The argument is that there is a difference in the cost of importing products but that’s just basically on transport cost; the various costs cannot be as much as double the price,” Dr. Mubanga said. “There’s something wrong with our cost model. We need to revisit our cost model and become realistic to save the Zambian populace and reduce the cost of living.”
Dr Mubanga also expressed concern about the quality of fuel being sold on the black market and its impact on local filling stations and urged law enforcers to take action against those involved in smuggling fuel. He urged the government to consider revising the fuel pricing mechanisms.
