Zambian President Hakainde Hichilema has expressed concern that the ongoing conflict in the Middle East could undermine the country’s efforts to make fuel more affordable for citizens.
According to the President, the government had managed the petroleum sector well prior to the U.S. and Israeli coordinated attack on Iran. He said he hopes the conflict will end soon, as it poses a risk of pushing fuel prices higher.
U.S. President Donald Trump on Monday said the Iran war, projected to last four to five weeks, could go “far longer.”
The conflict is already raising concerns among oil-importing nations, with Brent crude rising to $84 per barrel on Monday afternoon.
“We all hope this war will come to an end quickly so that it doesn’t shoot up the price of fuel and distort our inflation issues and the cost of doing business,” President Hichilema said on Monday while addressing more than 1,800 councillors from across Zambia.
“The economy is stabilising — macro-stability, fiscal consolidation, single-digit inflation down from 23 percent,” President Hichilema noted.
“We are only concerned about the war in Iran now, which could drive fuel prices up. You have seen what we have been doing to the pump price.”
He said the government has been working to reduce pump prices.
“The price of fuel is based on only three parameters, councillors. Part of this interaction is for you to gather data so you can take it back to your wards and explain to the people.
“The first parameter is the exchange rate, which we are managing well. The second is the cost of transporting fuel — that’s why we are pushing for more pipeline capacity, as it is cheaper than road transport.
“The third is the international price of fuel… the war in Iran is causing increases in fuel prices. That is beyond us. We don’t support war, we don’t support conflict, but that is beyond us.”
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