By JUDITH NAMUTOWE –

ZAMBIA and Saudi Arabia will soon sign a contract for the procurement of cheap petroleum products with the ultimate view of further lowering the cost of the commodities locally.
Mines, Energy and Water Development Permanent Secretary Charity Mwansa said the ministry was looking at a Government-to-Government deal that would enable it get access a cheap source of petroleum products.
Ms Mwansa said talks with the oil-rich country had reached an advanced stage and details of the contract would be unveiled once the contract had been signed.
“I must say the negotiations on the fuel deal on oil have greatly advanced and right now we are just about to sign a contract with Saudi Arabia,” Ms Mwansa said.
She said the contract from Saudi Arabia was expected into the country any time this week.
It was Government’s intention to lower prices of fuel in the country, hence Government’s decision to secure cheaper sources from countries like Saudi Arabia amidst reduced prices of oil on the global market which currently was stagnant at around US$58 per barrel.
“We are currently waiting for the contract which is expected in the country this week from Saudi Arabia,” she said.
Ms Mwansa said that the Government was also looking at other parameters that would trigger a further reduction of the fuel pump prices.
She said the Government was looking at insurance and transportation among other factors and if they were given a good rate, then the prices would be reduced further.
There were a number of factors that contributed to increases in the pricing structure of petroleum products among them the strengthening of the United States dollar against the Kwacha and transaction fees paid to middlemen in the procurement of petroleum feedstock.
Former Mines, Energy and Water Development Minister Christopher Yaluma said a team of technical experts from the Ministry of Finance would travel to Saudi Arabia for a meeting to seal the bilateral agreement on the importation of petroleum products.
Mr Yaluma said Government wanted to bring down the price of fuel to manageable levels to make it more affordable to the majority of local consumers.
“A team of experts from the Ministry of Finance will be led by the permanent secretary to go and finalise discussions with the government of Saudi Arabia to see if we can get the best deal from that country,” Mr Yaluma said.