US$20 million worth of fuel bought from Saudia Arabia was not enough – Nkhuwa

Energy Minister Mathew Nkhuwa says the US$20 million worth of fuel from Saudi Arabia is too little to have an impact on pump prices of fuel on the Zambian Market.

Mr. Nkhuwa said the fuel consignment from Saudi Arabia received early last month is a drop in the ocean because the quantities were minimal to have an impact on the market.

In September the Minister had explained that Zambia had enough fuel reserves and the fuel being imported from Saudi Arabia was to be an addition to the existing stocks.

He had further disclosed that the country uses US$1 billion worth of fuel per annum adding that US$500 million is imported and US$500 million worth of fuel is produced by Indeni oil refinery.

Speaking on the Red-Hot Breakfast Show on Hot FM this morning, Mr. Nkhuwa said Government is re-negotiating the oil deal with the Saudi Arabian Government on the possibilities of Zambia getting between US$200 to 300 million worth of fuel from that Country.

“If we continue with that deal and get more fuel from there, the citizens of Zambia will benefit. At the moment it was only US$20 million worth of fuel,” he said.

According to the Energy Regulations Board, the Saudi Arabia deal translates to about 13 days stock of petrol and about 6 days stock of diesel for the Zambian market.

The Energy Regulations Board yesterday announced an upward adjustment in fuel pump prices per liter by K2.31 for Petrol, K2.64 for Diesel and Low Sulphur Gas and K2.49 for Kerosene effective midnight tonight due to changes in the fundamentals that determine fuel prices.

Source: Lusaka Times