Africa-Press – Zambia. LUSAKA – President Hakainde Hichilema has warned oil marketing companies against hoarding fuel, describing the practice as sabotage that will not be tolerated by Government.
Speaking during a meeting with oil marketing companies (OMCs) at State House earlier today, President Hichilema said it was unacceptable for businesses to withhold fuel from the market in anticipation of higher prices.
The meeting was convened to discuss the impact of the ongoing tensions in the Middle East on Zambia’s petroleum imports and supply chain.
President Hichilema said hoarding fuel undermines teamwork and disrupts the country’s supply system, adding that Government expects fuel availability in storage to be reflected at filling stations across the country.
He stressed that it made little sense for fuel to exist in storage facilities while service stations were experiencing shortages, noting that players in the sector were aware of the factors causing what he described as artificial commodity shortages.
The Head of State further said Government wanted to eliminate distortions in the fuel supply chain and ensure that both filling stations and bulk buyers such as factories and mines have access to the commodity.
President Hichilema also urged stakeholders in the petroleum sub-sector to resolve disputes through dialogue rather than litigation.
He said businesses and Government should work together as partners, emphasising that the administration was committed to supporting the industry while ensuring citizens are served efficiently.
He added that reforms being implemented in the petroleum sector were aimed at strengthening supply security and maintaining reasonable stability in pump prices, stressing that the reforms were necessary and would remain in place.
Meanwhile, Energy Minister Makozo Chikote said Zambia currently has about 60 days of diesel stock cover, with part of the product already in the country and the remainder stored in tanks in Dar es Salaam.
Mr Chikote added that the country has about 22 days of petrol stock cover and emphasised the need for continued collaboration between Government and the private sector to address challenges affecting the sector.
And Pinchi Simukwai, vice-president of the National Oil Marketing Association, said the evolving conflict in the Middle East continues to exert pressure on global energy markets.
Mr Simukwai noted that Zambia, which relies on imported petroleum products, inevitably feels the effects of disruptions in global supply chains, fluctuating crude oil prices, higher freight and insurance costs, and increased volatility in international markets.
However, he said oil marketing companies operating in Zambia remain committed to maintaining stable supply and working closely with Government to ensure the economy continues to function smoothly.
Mr Simukwai added that the industry was confident that through continued dialogue, shared responsibility and collective action, Zambia would successfully navigate the global challenges currently affecting petroleum markets.
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