Divergent views greet reduction in pump price of fuel, as economists, transporters weigh in

The Economics Association of Zambia (EAZ) has called on businesses to reduce commodity prices in response to the recent fuel pump price reduction of nearly K3 per litre.

EAZ Executive Secretary, Dr. Nicholas Mainza, expressed concern that businesses often fail to lower prices even when fuel costs—which directly impact transportation and production—are significantly reduced.

“It’s unfair to the government, which is working hard to stabilise the economy and ensure access to essential goods,” Mainza told Zambia Monitor in an interview on Friday.

Mainza stated that: “The decrease in fuel prices lowers transportation costs for businesses, but that these savings were not proportionally passed on to consumers.”

He emphasised that while businesses benefit from lower operating costs, consumers continue to face high prices for basic commodities due to minimal or no reductions from retailers.

Meanwhile, Bus and Taxi Drivers Association (BTDA) National Secretary Sydney Mbewe said commuters in Lusaka would see uneven fare reductions depending on their routes.

“Routes like Town to Matero and Chunga, which have inflated fares, may not reflect much change, while routes such as Town to Chelston or Avondale, which follow official fare structures, may experience more noticeable fare cuts,” Mbewe explained.

He attributed the variation to the differences in fare-setting practices across the city.

In a separate interview, former Kasenengwa Member of Parliament, Sensio Banda, described the fuel price reduction as a delayed policy correction rather than a proactive economic stimulus.

“Previous failures to align domestic prices with global trends, driven by non-competitive supply deals, have already hurt the economy,” Banda said, adding, “Without consistent reform in procurement and pricing, the current price cuts may prove short-lived.”

He acknowledged that fuel price reductions can lower inflation and production costs, but argued that after four years of high prices, power shortages, and policy inconsistency, Zambia’s productive capacity had been weakened.

“Only through holistic energy sector reforms, procurement transparency, and credible fiscal policies can Zambia move from energy-induced stagnation to sustainable growth,” Banda stressed.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.