Energy expert Johnstone Chikwanda has warned Zambians to prepare for a potential rise in fuel prices, following heightened geopolitical tensions in the Middle East.
Dr. Chikwanda attributed the looming price hike to the Iranian parliament’s decision to shut down a key oil shipping route in response to recent U.S. airstrikes on nuclear sites in Iran.
Speaking in an interview with RCV News in Lusaka today, Dr. Chikwanda explained that the disruption in global oil supply is expected to trigger a spike in international oil prices, which will inevitably affect local fuel costs due to reduced inventories on the global market.
“Although Zambia may not immediately feel the impact because of the kwacha’s recent appreciation, the effects are likely to be felt in the long run,” said Dr. Chikwanda.
He further urged government to establish strategic petroleum reserves to cushion the country from future global supply shocks, arguing that the current fuel procurement model is proving costly.
Dr. Chikwanda also emphasized the importance of boosting intra-Africa trade, particularly in fuel sourcing, to reduce dependency on markets outside the continent.
By Christabel Kamunu
