Zambia: fossil fuel subsidies study
TPP Director, Dr. Neil McCulloch and Associate, Dr. Mashekwa Maboshe undertook a study of the political economy of fuel supply in Zambia for the Ministry of Energy and the Energy Regulatory Board.
In December 2021, Zambia undertook a dramatic reform of its fuel pricing system to eliminate fossil fuel subsidies and to re-orient expenditure to other pressing development needs. However, the new pricing mechanism now needs to be refined due further developments in the sector, notably the use of the Tazama pipeline to import refined diesel instead of crude oil. The challenge is to develop a mechanism that that is fair to all market participants, does not result in the re-emergence of fuel subsidies and is politically feasible.