By Michael Kaluba
The Oil Marketing Companies Association of Zambia IS anticipating up to K5 reduction in fuel pump prices with the use of the Tazama Pipeline expected to significantly reduce the cost of transporting low sulphur diesel into Zambia.
And the association has demanded that the announced bulk procurement system of low sulphur diesel does not segregate Zambian oil marketing companies but grants them to supply 50 percent of the product as an entitlement.
Association President Dr. Kafula Mubanga, who has commended government for the conversion of the Tazama pipeline which was recently launched, says such new measures in the energy sector will see the benefits passed on to consumers while also benefiting companies to plan better.
Dr. Mubanga is of the view that the use of Tazama pipeline will see government control the cost of transporting the product into Zambia and help to control pump prices while ending the vulnerability that Zambia has to market forces which currently manipulate the cost of fuel.
He explains that the use of the Tazama pipeline will accord OMCS a chance to plan as it will be a fixed but less cost on transport, will avoid delays at ports and borders while also opening up new opportunities for stakeholders.