- Stay Connected
Socialize
The Unheard Side Of The Fuel Subsidy Story
By Aron Sikombe
The reaction to the recent cut in fuel subsidies has been one of mixed feelings, with some economists saying it is a good policy with great long term benefits while others saying it is a miss guided policy. But what does this mean for the common Zambian? The ordinary Zambian will not take what any economist says, what they are looking at is that this has made life a lot more expensive. In this article I will not waste time explaining the importance of fuel to an economy, instead I will show you what the government could have done to make this cut in fuel subsidies beneficial for every Zambian.
Firstly, they said they will use the funds from the fuel subsides for infrastructure development. Sounds good on paper, but it is not the most efficient or effective way to use these funds. I agree the government was spending a lot on fuel subsides but those funds should go back to the transportation sector to make sure that the cost of moving goods and people remains the same if not cheaper. Outlining a problem without a solution is being part of the problem, so in this article I have pointed out steps that the government should have taken.
Compressed Natural Gas, (CNG) is a fossil fuel substitute for petrol, Diesel fuel and propane. It is much safer than other fuels in the event of a spill, because natural gas is lighter than air and disperses quickly when released. CNG is made by compressing natural gas (which is mainly composed of methane, CH4), to less than 1 percent of the volume it occupies at standard atmospheric pressure. It is stored and distributed in hard containers at a pressure 2,900–3,600 psi usually in cylindrical or spherical shapes.
CNG is used in traditional gasoline/internal combustion engine automobiles that have been converted to gasoline/CNG. Natural gas vehicles are increasingly used in most Asian countries the USA and in EU nations, its use is increasing because of rising oil prices. In response to high fuel prices and environmental concerns, CNG is starting to be used in pickup trucks, transit and school buses, taxis, trains and personal cars.
The cost of CNG per liter is $0.22 (1.188 ZMK R) and it is 1.3 times more efficient than petrol. To use this fuel one does not need to but a new car, all you have to do is install a CNG tank and a few more things to the car and you have a car that runs on both CNG and petrol or diesel. The transformation of a normal car to a CNG enabled car will cost $1000, and this is where the government should have taken the funds from subsidies to make the cost of the transformation cheaper and creating the necessary infrastructure.
Investing in this industry is clearly a step that can see our GDP increasing significantly and most importantly the common Zambian’s standard of living goes up.
Posted by Kunda
on September 16, 2013. Filed under LATEST NEWS.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
Luapula Fish
September 16, 2013 at 3:57 am
While i appreciate the author for a relatively good article ,but i would also want to emphasise that coming up with such plans will aways call for an alternative solution in case the proposed solution does not succeed due toa number of factors. A country is huge as such planning should always be with limited risks in order to protect the nation and protect the government in office against unwarranted political attacks
famous
September 16, 2013 at 5:48 am
What this economist say on removing subsidy as only benefited by rich people it is not true,even us the poor people we do (we used) to benefit.removing of fuel subsidy it as affected us all ,the price of goods are now high and richer as maintained his/her stand of living, they become richest on the expenses of the poor and the poor is becoming poorer.because the poor is not affording to reach the price of goods.enventury being a slave to the richer.
The economist
September 16, 2013 at 6:30 am
This guy is right why do our politicians think like this?? thumbs up Mr we need brains like yours to take Zambia to greater heights. I agree with you all that you have said this is the best way to spend this money
Mr tumfweko
September 16, 2013 at 10:55 am
Brilliant ideas.Pipo who practice politics are not politicians.No-wonder the gvt is off center.I wish they could listen to you.
Straight talk
September 16, 2013 at 12:53 pm
That is just one of the alternatives.Where can one get a CNG tank in Zambia?Again that would have meant modifying all filling stations and storage facilites so as to accomodate the new product.All in all its a good idea in the long term if properly implemented but from the look of things,the product seems to be a very high flamable product and considering our safety standards………???????????????????????
Straight talk
September 16, 2013 at 12:54 pm
That is just one of the alternatives.Where can one get a CNG tank in Zambia?Again that would have meant modifying all filling stations and storage facilites so as to accomodate the new product.All in all its a good idea in the long term if properly implemented but from the look of things,the product seems to be a very high flamable product and considering our safety standards………???????????????????????Its highly unlikely that we can fail to keep it safe.
Chemical man
September 16, 2013 at 1:04 pm
CNG is even safer than petroleum it is lighter hence it evaporates once let out unlike petroleum which collects once let out. I am a chemical engineering student so I know CNG
Mwine Mushi
September 16, 2013 at 3:09 pm
Why are people like this not in office?? We are tired of these fools who just go to parliament to sleep and shit. Please mr take up this plan of yours and we will fight with you, and these people who are commenting come up with solutions not just empty criticism
chile1
September 16, 2013 at 3:31 pm
Good idea bt nat 4 nw,
MundiaM
September 16, 2013 at 3:43 pm
It is a viable plan which would also have created employment. The buzz from the activity surrounding the changes would have been phenomenal.