Effect of Monthly Fuel Price Reviews on Operational Sustainability of Lusaka’s Minibus Operators in Zambia
Journal Title: Journal of Economics, Finance and Management Studies - Year 2025, Vol 8, Issue 04
Abstract
The transportation sector plays a vital role in Zambia’s economy, with minibuses being the primary mode of public transport in Lusaka. However, the frequent and unpredictable nature of monthly fuel price reviews presents significant challenges to the sustainability of minibus transport operations. This study investigated the effects of these fuel price fluctuations on financial stability, service quality, and long-term viability. Using a qualitative exploratory approach, data was collected through structured interviews with 10 minibus drivers and 5 operators, selected using the saturation method. Additional insights were obtained from regulatory authorities and commuter representatives. Findings reveal that fuel price fluctuations negatively impact profitability and operational efficiency. Operators often respond to rising fuel costs by increasing fares, which results in commuter dissatisfaction and a shift toward alternative transport options, such as illegal taxis and ride-sharing services. Uncertainty around fuel pricing discourages investment in fleet upgrades, leading to the continued use of older, less fuel-efficient vehicles. To manage financial pressures, operators cut maintenance costs, reduce driver wages, and extend working hours, which actions reduce service quality and affect driver welfare. The absence of an automatic fare adjustment system forces operators into reactive decisions rather than strategic planning. Although fuel price reviews aim to align with global market trends, their current structure undermines operational sustainability. To mitigate these effects, the study recommends introducing a more predictable and transparent fuel pricing framework, targeted subsidies for public transport operators, and incentives for adopting fuel-efficient technologies. It also calls for stronger collaboration among government agencies, fuel suppliers, and transport associations to develop policies that support stability in the sector. In conclusion, while fuel price reviews are economically necessary, their unpredictable implementation significantly burdens minibus operators. A more comprehensive transport policy is needed to support sustainability, with further research into alternative fuels and long-term pricing strategies.
Authors and Affiliations
Astin Phiri , Chrine C. Hapompwe,
Keywords
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- EP ID EP764476
- DOI 10.47191/jefms/v8-i4-19
- Views 12
- Downloads 0
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