The current reduction in fuel prices has a cross cutting effect on manufacturing and production industries which have an implication on the cost of doing business and ultimately the price of goods and services in the country, says Zambia Association of Manufacturers (ZAM) chief executive officer Maybin Nsupila.
Mr Nsupila said the announced reduction in fuel pump prices was a significant move which reflected the drop in the price of crude oil on the international market.
“This move has a lot of implication to the competitiveness of the sector with the 23 per cent and combined with the recent reduction of about 30 per cent drop in pump prices.
“The manufacturing industry imports a lot of raw materials which have to be transported into the country at a very high cost. The reduction in fuel pump prices implies the cost of transport is going down,” he said.
He said the benefits of fuel price reduction were not just for the manufacturing industry, but also on the general economy on the pricing of goods and services in the country.
Mr Nsupila said the cross cutting effect of the reduction speaks to the competitiveness of the sector for transporters, producers and manufacturers who should extend these benefits to the secondary consumer at the household level.
“I hope that producers should be considerate enough to pass on the benefits of this move to reduce the fuel pump price to the consumers and other end users, and this is expected following this significant drop in the energy cost,” he said.
The Government on Thursday announced another 23 per cent reduction in fuel pump prices additional to the earlier 10 percent reduction in line with the international pricing which was about US $50 per barrel.
Various sectors have hailed the move which was expected to reduce the cost of goods and services and subsequently the cost of doing business which was attributed to the high energy cost in Zambia.