THE Special Audit Report of the Auditor General on the procurement of petroleum products has revealed that the PF government spent K6.7 billion on fuel subsidies between 2019 and 2021. And the report revealed that the PF government awarded a contract for the construction of Fuel Depots in seven provinces to a company without experience. The Report indicated that the Ministry of Finance and National Planning paid K6.7 billion in subsidies to the Ministry of Energy to offset the losses resulting from price differentials and exchange rate fluctuations. “Since January 2008, the pricing of petroleum products in the country followed the Cost-Plus Pricing Model (CPM). The CPM was used to determine the wholesale prices by considering all expenses related to...

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