OMCAZ QUESTIONS GOVERNMENT'S ALTERNATIVE FUEL SUPPLY STRATEGY
By Elesani Phiri
The Oil Marketing Companies Association of Zambia-OMCAZ- has questioned government's approach to securing alternative fuel supply routes, citing inconsistencies in the implementation of previously announced initiatives involving Angola and Namibia.
This follows government's announcement that it is engaging the Dangote Petroleum Refinery as part of efforts to establish an alternative fuel import route to complement the existing supply channel through the Strait of Hormuz amid concerns over the potential impact of tensions in the Middle East on global oil markets.
OMCAZ President Dr. Mubanga Kafula says the earlier proposals, particularly the Angola route, could provide a more cost effective solution than the proposed Dangote Petroleum Refinery supply arrangement.
Dr. Kafula has urged government to reassure the nation on the country's fuel security and provide an update on the progress of discussions with Nigeria's Dangote amid concerns over possible disruptions to global oil supplies
He says the immediate priority should be ensuring a stable supply of finished petroleum products through existing market mechanisms.
Dr. Kafula explained that under the current policy framework, the procurement of fuel is the responsibility of Oil Marketing Companies rather than the government, adding that OMCs should be allowed to engage directly with suppliers such as Dangote to secure petroleum products.
He says while efforts to diversify fuel import routes are important, engagements with Dangote should be viewed as a long term strategy whose benefits may not be realized immediately.
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