Reference no: EM133086011

Provide peer response to the discussion below.

Headline: Zambia hikes fuel prices after removing subsidies on petroleum products

According to an online publication Reuters.com (2021, Dec. 16), "Zambia has increased the price of fuel after removing subsidies on petroleum products to reflect the correct price of the commodity," the energy regulator said on Thursday.

Identification of the moral problem

Petroleum is a critical component that drives the economy. Raising the price of the commodity affects the quality of social life. People are forced to live a miserable life. Due to price rise, the purchase of essential commodities like food and medicines goes beyond the reach of one's pocket. This action becomes an ethical dilemma that needs a resolution as it affects several stakeholders such as commuters, manufacturers, retailers, distributors, health service sector etc. People need to live a generally acceptable quality life created by affordable fuel pump price (World population ,2013).

Option for the action

1. Strengthening of the Kwacha against the dollar through forex injections.

2. Elimination of transaction fees paid to middlemen in the procurement of petroleum feedstock.

3. Storage facilities would be constructed in all provincial centres and other strategically located to reduce transportation costs.

4. The introduction of electrically driven automobile.

Ethical Judgment

The government should evaluate the options to choose the best and implement to resolve the ethical dilemma. My position would be to eliminate transaction fees paid to middlemen in the procurement of petroleum feedstock and establish government to government transactions.

Reflection

The best option is reflected upon to be established for the course of action (Stanwick & Stanwick,2016).