LUSAKA - The Energy Regulation Board (ERB) says Zambia has partially begun transitioning from monthly to quarterly fuel pump price reviews following progress in establishing the country's strategic fuel reserves.
ERB Director General Elijah Sichone said the transition had been delayed because key requirements, including fuel price stabilization measures, strategic fuel stocks, and adequate fuel storage infrastructure, were not yet in place.
Speaking in an interview with Phoenix News, Eng. Sichone said the country is now making significant progress, making a complete shift to quarterly fuel price reviews likely in the near future.
He revealed that fuel storage tanks have already been constructed in several provinces as part of the government's strategy to strengthen the country's fuel security.
According to Eng. Sichone, the plan is to gradually increase strategic fuel reserves, starting with seven days' stock, before expanding to 15 days, 30 days, and eventually 90 days, depending on available funding and storage capacity.
He noted that maintaining strategic fuel reserves is expected to reduce supply disruptions and cushion the country against unexpected fuel supply shocks.
Eng. Sichone added that the increased fuel reserves should help stabilize the petroleum sector and reduce the likelihood of significant increases during future pump price reviews.
Source: Phoenix News
By: Joseph Kaputula