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Fuel price to remain stable

SECRETARY to the Treasury Fredson Yamba says fuel prices will not increase when Government dis-engages from buying the commodity since 25 percent import duty is waived when oil marketing companies (OMCs) are engaged to procure fuel beginning next year.
There have been concerns that fuel pump prices will increase following the announcement by Minister of Finance Felix Mutati that Government will no longer be active in the procurement of fuel but will instead allow the private sector to buy the commodity.
But Mr Yamba said OMCs enjoy 25 percent duty waiver whenever they are engaged to import fuel.
“Government will disengage gradually from the procurement of fuel and the impact on prices will be minimal since OMCs enjoy 25 percent duty waiver when uplifting fuel,” he said.
And Zambia Revenue Authority (ZRA) Commissioner General Kingsley Chanda said pump prices will not go up when Government stops procuring the commodity.
“The tradition is that when OMCs uplift from Indeni Refinery, they pay the 25 percent duty, but when they import, Government issues a statutory instrument to waive the duty,” he said in an interview at the recently held Zambia Institute for Policy Analysis and Research post-budget discussion.

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