OMCs ready to give 50p.c to locals but…

OIL Marketing Companies (OMCs) are ready to allocate 50 percent of contracts to local transporters but there is need for incentives that will be attractive to business, OMCAZ president Kafula Mubanga has said.

Dr Mubanga said transporters should relook at prices and ensure flexibility of payments.

He said in as much as transporters through the Petroleum Transporters Association of Zambia (PTAZ) had agreed to reduce the transportation costs some individual firms have not reduced the prices.

"OMCs and PTAZ should dialogue and agree on issues pricing and flexibility in terms of payments," Dr Mubanga said.

He said there were cross cutting issues that needed to be addressed by both parties.

Dr Mubanga said taking the legal route would not be idea before exploring all other alternatives.

"There is need for OMCs and PTAZ to re-engage and address certain matters that have affected smooth compliance with SI 50 of 2021,"

Dr Mubanga said.

He said transporters through PTAZ should review the prices in line with market forces.

PTAZ has warned that it will not hesitate to seek legal redress from our courts of law against Oil Marketing Companies (OMCs) and Suppliers that have continued to engage foreign transporters despite the enactment of Statutory Instrument number 50 of 2020.

Petroleum Transporters Association of Zambia (PTAZ) Spokesperson Benson Tembo has said PTAZ will not watch impunity being exhibited by OMCs and suppliers to continue acting outside the law despite having laws aimed at empowering local transporters.

He said the association was aware that some OMCs have even signed local out business with companies who have 100% foreign shareholding.

Mr Tembo said it was disappointing that some mining houses in Zambia are using suppliers who are exclusively using foreign owned trucks companies with 100% shareholding.