Ndhlovu Mocks ERB Over 85 Ngwee Fuel Price Reduction

Former Deputy Minister in the Chiluba regime Alfred Ndhlovu  says the Patriotic Front(PF) should not brag about the 85 Ngwee reduction of  fuel prices because it is just a drop in the ocean.

Briefing the press in Lusaka recently, PF Secretary General Davies Mwila boasted that the reduction of fuel and Meali-meal prices are as a result of the ruling party pro-poor policies.

According to Ndhlovu, fuel prices on  international market are reducing, therefore  one could have expected the Energy Regulation Board(ER ) to  reduce the commodity by over K2.

Ndhlovu said reduction of fuel and Meali-meal prices are not as a result of the PF pro-poor policies.

Ndhlovu said in an interview that the reduction of goods and services are not determined by good party policies but rather  by the law of demand and supply.

“Meali-meal prices are reducing because farmers have just harvested their produce. Fuel prices have reduced by 85 Ngwee because the commodity is selling cheaply on international market,” he said,” Prices in a liberalised economy are determined by the law of demand and supply and not good government policies. Therefore, the PF should not stand on mount Sinai and sing songs that their policies have paid off.”

The Jesuit centre for theological reflection (JCTR) monthly Basic Needs Basket (BNB) for July reported a reduction of K99.17.

JCTR Communications officer Tendai Posiana  says  a family of five living in Lusaka last month July stood at  K4,859.35 which was K99.17 less than the June BNB which stood at K4,958.52.

Posiana said the reduction in BNB was caused by reduction in prices of food commodities which included  mealie meal that reduced from K80.4 per 25kg in June to K65.57 per 25kg in July, dry Fish reduced from K169.83 per kg in June to K113.74 per kg in July, and tomatoes reduced from K8.25 per kg in June to K7.43 per kg in July.

She said Non-food items including soap reduced from K5.94 in June to K4.83 in July, whilst charcoal reduced from K158.33 per 90kg bag in June to K143.75 per 90kg bag in July.

Posiana says the drastic reduction in mealie meal prices is owed  to increased availability of maize grain after the harvest season.

She said the reduced mealie meal prices played a major part in reducing the July BNB cost of living although Prices for Kapenta increased due to its reduced supply while the demand remained constant.

JCTR  has urged the government to provide a conducive environment for the private sector and farmers to fairly buy and sale maize.

She says  JCTR  urges farmers to add value to their products through the Zambia Cooperatives Federation solar hammer mills project.

She was however, quick to mention that  Government needs to be consistent when it comes to policy direction, lacking in the past when setting FRA floor prices and purchase targets.

Posiana has urged FRA to target and buy maize from vulnerable farmers, especially those in rural areas who find it difficult to access markets.

She said this has been a challenge to  , specifically  the Ministry of Agriculture, which needs perpetual diversification by putting incentives that will attract farmers to grow other crops as well including soya beans and Rice.

“The ministry should invest in research and extension services to educate farmers on the importance of diversifying and how they can add value to their products so that the focus will not just be on the maize crop but on other crops as well.” Posiana said.