Friday, March 29, 2024

Local Fuel Transporters in Zambia Safe from Business Threat – Peter Chibwe Kapala

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 The recent conversion of the Tanzania Zambia Mafuta (TAZAMA) pipeline from a crude oil feedstock transportation system to a refined diesel transportation system is not expected to put local fuel transporters out of business. This was confirmed during a press briefing held at the Government Complex last Friday, where a government spokesperson said, “These developments should not cause anxiety among petroleum transporters. Local fuel transporters will still be involved in ferrying the commodity from the main storage depots and distributing across the country.”

The reconfiguration of the TAZAMA pipeline is expected to result in reduced fuel landing costs, which will eventually lead to lower pump prices. “The re-configeration of the pipeline will enable it to pump and transport refined low-Sulphur diesel to Indeni Refinery, which has now become an oil marketing company (OMC) with storage depots,” the spokesperson added.

The conversion of the TAZAMA pipeline to pump and transport refined low-Sulphur diesel is progressing well. The government has completed 15% of the cleaning and conversion process, and it is expected to be completed within the first quarter of 2023. “The conversion process should be completed within the first quarter of this year and at the latest the beginning of the second quarter,” the spokesperson confirmed.

Once completed, the TAZAMA pipeline will be able to pump 90 million litres of diesel per month, ensuring a reliable and sustainable fuel supply at a reduced cost. The government is committed to stabilizing and reducing the cost of petroleum products in the country. “The New Dawn Government is commited to ensuring sustainable fuel supply, an important catalyst in the economic development of the country. Further, the Government, through the Ministry of Energy, will continue working on measures to stabilize and reduce the cost of petroleum products on the Zambian market,” the spokesperson stated.

In conclusion, local fuel transporters in Zambia can breathe a sigh of relief, as the TAZAMA pipeline upgrade is not expected to put them out of business. “These developments should not cause anxiety among petroleum transporters,” the spokesperson emphasized. The government is working hard to ensure a sustainable and cost-effective fuel supply for the country.

13 COMMENTS

  1. Well and good. But we still need a refinery – for job creation and lower cost of refinery products, such as bitumen.

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    • So it will mean even something as bitumen which was a by product from crude oil refinery will be imported thereby increasing the cost of laying tarmac in the long term….whoever thought of this conversion of TAZAMA pipeline to pump refined product needs to be ashamed of themselves as they are very shortsighted.

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  2. Can someone explain how reducing the price of diesel will reduce the price of petrol.
    What will be the new fuel prices after this conversion

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    • They are not being truthful and not even disclosing everything even the cost of conversion all these costs will have to passed on to the consumner and then we will have more haulers transporting a highly flameable product like petrol on our roads.

  3. What are our sources of these finished petroleum products? Is it the saudis, Tanzania or Kenya? It would help the citizenary if we were also transparent about the source.

  4. I can see a new criminal emerging when this pipeline is created….expect more accidental spillages and criminals tapping in on that pipeline like in Nigeria.

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  5. Our friends in developed countries who steal our resources because people like hh let’s them, are talking about net zero and renewable resources, whilst you are lamenting about diesel. Very backward government.

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  6. What about the current shortage of fuel in the country even after the increment? Is it transporters or OMC or the government to blame?

    • The major omcs are complaining about low profit margin. They made losses in Nov/Dec. They are waiting for the right price increase before they make their orders.

  7. It’s this kind of talking that’s causing uneducated chaps with zero understanding of how systems work to challenge educated fellows. I wouldn’t be surprised if Kapala wa muntu loses an election to Dokota Proud who only has a marriage certificate in his possession as the only certificate in his life. Politicians have collectively brought this country down

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