LUSAKA - The Ministry of Energy has announced that the Government has suspended negotiations with Dangote Petroleum Refinery of Nigeria over the proposed supply of petroleum products after determining that the deal was not commercially favourable.
Speaking in an interview with Phoenix News, Ministry of Energy Permanent Secretary Professor Ephraim Munshifwa said the Government was unable to secure lower fuel prices because Dangote's pricing is linked to international market rates amid strong global demand.
Professor Munshifwa said Zambia will instead source petroleum products from an alternative supplier over the next four months before reverting to the Open Access Framework, which will allow private companies to resume fuel imports.
He explained that the Government's direct involvement in fuel procurement was a temporary emergency measure introduced to safeguard the country's fuel supply during uncertainties caused by the conflict in the Middle East.
Professor Munshifwa said the transition back to the Open Access Framework is expected to restore private sector participation in fuel imports while ensuring continued fuel security.
Source: Phoenix News