Minister of energy, david mabumba says they are negotiating with the Saudi Arabian Government to Extend the 20 Million United States Dollars Fuel deal in order to Stabilize Fuel Prices in the Country.
In May this Year, the Saudi Arabian Government through the Saudi Fund For National Development Offered a 20 Million United States Dollars Revolving Fund to Supply Cheaper Oil to Zambia and Reduce Domestic Fuel Prices for the Next Five Years.
Speaking at a Press Briefing this Morning, Mr. Mabumba explained that Modalities are being put in Place of ensuring an efficient Fuel Supply System.
Meanwhile, Mr. Mabumba added that the Removal of Subsidies on Fuel will enable the Construction of an Oil Pipeline for Finished Products.
Zambia spent more than $200 Million on Fuel Subsidies between January and September this Year, an unsustainable burden on the treasury.
The Retail Price of Petrol increased nearly 39 Percent, While the Price of Diesel went up 33 Percent, after Subsidies were Removed.
The International Monetary Fund wants Zambia to Reduce Subsidies as part of an Aid Package currently being Negotiated.