By Respite Kaoma,
Renowned energy expert Dr. Johnstone Chikwanda has warned that the Energy Regulation Board’s introduction of a K3 per litre fuel surcharge could disrupt the stable tax regime in the mining sector.
Dr. Chikwanda tells Mafken News that the surcharge intended to stabilize pump prices for three months is projected to raise about K780 million per month.
However, he cautions that some mining companies operate under bilateral fuel supply agreements with price review mechanisms every three months, and applying the surcharge to them could prove costly.
He notes that certain large mining firms may face an additional burden of up to K70 million per month, translating to about K840 million annually.
Dr. Chikwanda has since urged policymakers to carefully assess the implementation of the measure to safeguard the stability of the mining industry.
