In a recent public forum organised by News Diggers in Lusaka, Finance and National Planning Minister Situmbeko Musokotwane provided insights into the seemingly low fuel prices during the previous administration, highlighting the government’s failure to meet financial obligations to petroleum suppliers as a key factor.
Musokotwane revealed that upon assuming office, the current administration was confronted with a substantial outstanding bill of K800 billion for fuel procurement, underscoring the significant financial challenge inherited. He emphasised that the previous government’s failure to settle payments with fuel suppliers created a misleading impression of cheap fuel prices.
“The previous government was not fulfilling its financial commitments for petroleum, hence the illusion of inexpensive fuel,” Musokotwane stated. “When we took office, we inherited a fuel debt burden of K800 billion, and there were looming threats of even higher payments.”
He noted that this approach was unsustainable and left the country exposed to potential penalties and adverse consequences. Musokotwane also elaborated on the trade-off between fuel subsidies and vital public services, suggesting that the previous administration’s prioritization of fuel subsidies came at the expense of sectors like education.
“The PF administration chose to subsidize fuel over education, believing fuel to be more critical,” Musokotwane remarked. “They extended apologies to students, whereas our apologies are directed towards car drivers.”
However, Musokotwane assured the public that the government is actively tackling these challenges and expressed optimism for the future. He stressed that the current difficulties are temporary, and brighter days are ahead.
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