Reduce fuel pump prices – demands Kambwili
By Staff Reporter
Opposition National Democratic Congress (NDC) has demanded the immediate downward revision of the fuel pump prices by the Energy Regulations Board (ERB) as international market prices fall.
And Opposition Green Party President Peter Sinkamba has advised government to take advantage of the falling oil prices to market the Zambian Kwacha and raise funds to liquidate the rising external debt.
In a statement NDC 2021 presidential candidate Chishimba Kambwili said the call to down the pump price of fuel follows the substantial reduction of fuel prices on the international market.
He said the people of Zambia are already feeling the debilitating effects on the increased fuel prices.
“The recent adjustments of fuel prices by the ERB has triggered an upward adjustment in food prices and other essential goods and commodities. The ERB should have no excuses in waiving fuel prices considering that crude oil has reduced by 20 percent on the international market,” said Kambwili
Kambwili added that oil prices have now hit about US$60 per barrel.
“Thus, the need to reduce the fuel pump prices is long overdue. The NDC further demands that Government removes middlemen in the supply procurement chain of crude oil,” he said
Meanwhile, Sinkamba has advised government to take advantage of the falling oil prices to market the Zambian Kwacha and raise funds to liquidate the rising external debt.
Sinkamba said the meltdown in the oil market has caught almost everyone off guard and was likely to significantly hurt oil producing countries.
He said in the span of weeks, crude prices went from a four-year high to a full-blown bear market.
“The oil crash whereby crude oil is down more than 30% from its recent peak, was triggered by a series of factors. This has come at a time when traders were expecting $100 per barrel. US oil prices plummeted another 7% on Friday, breaking below $51 a barrel for the first time in 13 months. President Donald Trump celebrated the oil crash,” he said.
Sinkamba added that Zambians should celebrate too, if government was looking for big business to fund-raise due to falling oil prices.
“Though fuel price reduction could have a ripple effect on the economy, however, this is not where money lies. Money will be in the forex business as a spin-off from the downturn,” Sinkamba said. “At the moment, the Forex pair with good return is the USDZMW and can be a profitable investment option for petro-dollar investors during a down-turn like this one at the current rate of K11.86/USD”.
“Based on forecasts, a long-term increase is expected. According to currency Forecast Systems, the USD/ZMW Forex pair is a good long-term (1-5year) investment. Forex rate prognosis for November, 2023 is 19.275. So, with a 5-year investment, the revenue is expected to be around +62.51%,” he added.
“If you invested $100 this month, this may go up to $162.51 in 2023. Better still, if you invest US$3billion, your investment may go up to US$4.86billion. This is one way Zambia could indirectly make a big kill to service external debts during the down-turn, not the buying cheap oil,”
And the market insider had reported on Friday 23th November 2018 that the Dow drops more than 175 points and oil hits its lowest level in more than a year
Stocks fell Friday as Wall Street worried about ongoing trade tensions and the prospect of slowing economic growth around the world, with technology shares continuing to slip and oil prices hitting their lowest levels in more than a year.
The Dow Jones Industrial Average slid 0.73%, or more than 175 points, and the S&P 500 shed 0.65%. The Nasdaq Composite fell 0.48%. Friday’s close marked the worst Thanksgiving week for US stocks since 2011. Retail shares found some relief, however, with the SPDR S&P Retail ETF up 0.29%.
Trade-sensitive stocks were lower, with Boeing down 1.5% and Caterpillar off by 1.2%.
Oil plummeted deeper into bear-market territory, hitting its lowest level in more than a year Friday as investors fretted over the prospect of oversupply and dampened demand. West Texas Intermediate was just below $51 a barrel, and Brent slid below $60 a barrel. Energy stocks, including Chevron (-3.2%) and ExxonMobil (-2.6%), sank on the back of the decline
Crude prices have shed more than 20% since the beginning of November, when the Trump administration announced exceptions to oil sanctions against Iran.
Investors are awaiting a meeting between the OPEC cartel of oil producers and other major producers led by Russia on December 6, where OPEC will decide whether to cut coordinated output levels.
Treasury yields fell as investors moved toward the relative safety of US government bonds, with the 10-year yield down 2.6 basis points to 3.035%. The dollar, meanwhile, jumped 0.34% against a basket of peers.
