PRICES of consumer goods in Zambia are expected to reduce soon in response to the recent reduction in fuel price announced by Government, says a business consultant in Lusaka Noel Lungu.
Mr Lungu said despite the fuel reduction coming against a setback of the unstable the kwacha, it should at least make valuable contribution to the lives of Zambians.
He said currently the reduction of fuel price appeared not to have any immediate impact on the cost of food and transport which were cardinal to the lives of many Zambians.
Mr Lungu said it was unfortunate that the slump in crude oil prices on the international market was not being quickly translated into real and meaningful gains on the local market.
He said the price of crude oil on the international market had continued to drop significantly during the last half of 2014 on account of oversupply originating from international stock build-up and the steady increase in fuel self-sufficiency.
Mr Lungu said it was expected that the crude oil price reductions on the international market should invariably lead to price reductions in essential basic commodities in the country.
He said the real issue on the ground was that the cost of living had risen sharply and placing an unbearable burden on the working class and other citizens.
He said the fuel hike was detrimental to poverty reduction in Zambia that needed Government to immediately intervene after the cost of fuel on the international market had soured.
Two weeks ago the Energy Regulation Board (ERB) reduced the pump price of petroleum products by K2, with petrol being pegged at K2.29, diesel at K2.59 and kerosene at K2.08 respectively.