OMCAZ Implores Government to Take 50% Stake in Fuel Procurement

Oil Marketing Companies Association of Zambia (OMCAZ) has called on government to take a 50 percent stake in procurement of fuel to avoid supply disruptions on the domestic market.

Speaking in an interview with Money FM News, Association President Dr. Kafula Mubanga said government’s involvement in fuel importation and supply will warrant national fuel security.

Dr. Mubanga added that when the oil sub-sector is run by the private sector, government has little say over its operations except setting policies.

“In Zambia, policies are not strong enough to control what the private sector does and operations can be compromised because government does not inject money into it,” Dr. Mubanga said.

He also called for government’s intervention on the current shortage of petroleum products in the country.
“The current challenges require the Ministry of Energy to come in and address them rather than leaving the Energy Regulation Board (ERB) to handle them,” he asserted.

Dr. Mubanga further noted that for fuel supply to normalize, there is need for bilateral engagements between government and suppliers.

He also attributed the current importation challenges to external factors such as wars in fuel producing regions.

According to Energy Regulation Board, the country is facing fuel importation challenges due to delays in tanker clearance at multiple border posts.