DYNAMICS OF ZAMBIA’S PETROLEUM PRICES – ARE MONTHLY REVIEWS A PROBLEM?

Post the August 2021 elections, government embarked on sectoral economic reforms aimed at rebuilding the economy. Key reforms in the energy sector involved the removal of some fuel subsidies, placing of INDENI refinery on care and maintenance and much more recently, the introduction of monthly reviews for setting pump prices of fuel whose pros and cons have been up for debate, especially when the resulting adjustment is upwards. The overarching question is, are these monthly reviews inherently problematic? In our view, monthly reviews are neither the problem nor the solution but are necessary to get us close to an efficient energy market.

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