GLOBAL FUEL PRICE HIKE HITS ZAMBIA

HIGHinternational oil prices and the Zambian government’s desire to maintain the price of fuel low are conflicting and now leading to shortages of fuel in some parts of the country.

Some oil marketing companies have halted the procurement of fuel owing to the increase in importation costs.

A check by the Daily Nation in Lusaka yesterday found that most filling stations did not have diesel.

Ministry of Energy Permanent Secretary, Dannies Chisenda said the shortage of diesel was as a result of disruption in supply following the pull-out from supply by some oil marketing companies.

Oil Marketing Companies Association of Zambia (OMCAZ) president, Kafula Mubanga who confirmed that some oil companies had pulled-out said oil had become expensive at Beira in Mozambique and other spots of supply because of the high demand for the commodity.

Dr Mubanga said in an interview that multinational companies which procure shipments of oil directly from oil producer companies had increased prices at points of supply such as Beira.

“Local OMCs buy from some multinational companies that procure directly from oil producers. So when there is too much demand, the multinational suppliers increase the price and when the price is too high, OMCs stop buying because they end up importing at a loss,” he said.

And Mr Chisenda however said Government was engaging oil marketing companies to find a quick solution to the challenges that have led to disruptions of fuel supply.

He said in a separate interview that currently there was lesser fuel being imported.

Mr Chisenda said prices of fuel on the international market had also increased.

“We engaged oil marketing companies over this situation and we were told that some were not bringing in the fuel because importation costs are high. Prices on the international market have gone up, so there is lesser fuel coming in,” he said.

One motorist, Mr Aubrey Chanda, said diesel and kerosene had run out in most filling stations in the capital city.

Mr Chanda said motorists whose vehicles use diesel had now parked their automobiles because the commodity was no longer in stock.

He called on the Ministry of Energy to sort out the problem, and that if left unchecked it would affect most businesses.

Another motorist, Mr Chabala Nkhoma, who is a businessman said the shortage has had a negative impact on his daily operations.