James Chiwala Urges Action as Fuel Price Pressures Build in Zambia

By Daily News Reporter 

Zambia is bracing for potential fuel price increases as escalating tensions in the Middle East continue to disrupt global oil markets, raising concerns over the cost of living and doing business.

The recent surge in international crude oil prices has placed pressure on the Energy Regulation Board (ERB) to adjust domestic fuel prices, with stakeholders warning that the country’s import-dependent energy sector leaves it exposed to external shocks.

Business Development and Marketing Expert and Co-Founder of CNC360 Consulting, Mr. James Chiwala, has urged authorities to act strategically to cushion the economy from the unfolding crisis.

“Zambia is not isolated from global market dynamics. When oil prices rise internationally, the impact is inevitably felt locally, particularly in fuel-dependent sectors,” he said.

Fuel remains a critical input across key sectors such as transportation, agriculture, mining, and manufacturing. Any increase in pump prices is expected to trigger a ripple effect, pushing up the cost of goods and services nationwide.

The situation is further complicated by the weakening of the Zambian Kwacha, which has depreciated against major currencies, making fuel imports more expensive and intensifying inflationary pressures.

Economic analysts warn that the combined effect of rising global oil prices and currency depreciation could lead to sustained increases in the cost of living, placing additional strain on households already grappling with economic challenges.

Small and Medium Enterprises (SMEs), which form a significant portion of Zambia’s economic activity, are among the most vulnerable. Many businesses are now facing difficult decisions, including increasing prices, cutting operational costs, or scaling down production.

Consumers are already beginning to feel the impact. Transport fares have started to rise in some areas, while traders report increasing prices for basic commodities.

“Fuel affects everything—from how goods are transported to how much we pay for food. When it goes up, everything else follows,” said a Lusaka-based commuter.

Mr. Chiwala has called for a series of policy measures aimed at strengthening Zambia’s resilience to global economic shocks. These include building strategic fuel reserves, investing in alternative energy sources, enhancing local production capacity, and stabilizing the national currency through prudent fiscal management.

He also emphasized the importance of clear and timely communication from regulatory bodies to help businesses and consumers anticipate and adjust to price changes.

As global uncertainty persists, Zambia faces the challenge of balancing economic stability with external pressures beyond its control. Experts say the current situation highlights the urgent need for long-term strategies to reduce reliance on imported fuel and build a more resilient economy.

With the Middle East crisis ongoing, the coming weeks will be critical in determining how Zambia navigates the economic impact of rising fuel costs.