Millers give condition for price reduction
Published On February 4, 2015 » 1822 Views» By Administrator Times » Business, Stories
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.SAKALA

.SAKALA

By MAIMBOLWA MULIKELELA –

THE Millers Association of Zambia (MAZ) president Allan Sakala has said mealie-meal prices will only come down once transporters reduced transportation costs.
Last month, the Government through the Energy Regulation Board (ERB) reduced the pump prices of petroleum products by K2.29 for petrol and K2.59 for diesel representing 23.13 and 28.22 per cent.
Mr Sakala said it was only fair that transporters adjusted their prices downwards to allow the millers to also work on a reduction in
prices but that if there was no reduction in transportation costs then the prices of the commodity would remain the same.
“We met our members and we have resolved that truckers or transporters need to reduce their costs before we reduce the prices of mealie-meal because currently the cost of transporting the maize has remained the same despite a reduction in the pump price of petroleum products,” Mr Sakala said.
Mr Sakala said in an interview that the price of a 50 kilogramme bag of maize was increased from K70 to K78 and electricity tariffs had also gone up, the two being the major determining factors on the price on mealie-meal.
“As you know the price of a 50 kilogram bag of maize has gone up from K70 to K78, electricity costs have also gone up and transporters have not been able to reduce their rates. Immediately the transporters reduce their rates, we will also reduce the price of mealie meal,” he said.
Mr Sakala however, said in other parts of the country such as Chipata, Serenje and Kasama, the mealie meal prices had already been reduced because transporters in these localities had cut their transportation charges.
Former Mines, Energy and Water Development Minister Christopher Yaluma said the Government had a genuine interest in lowering the price of fuel hence the initiative to seek government-to-government contracts that were envisaged to significantly reduce the cost of petroleum feedstock that Zambia imported.
The pump price reductions being announced are a reflection of the responsiveness to the voice of the Zambian people and the Government’s interest in having lower pump prices.
The benefits of the continued drop in international oil prices was now being realised in the form of the substantial wholesale and pump price adjustments.

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