Zambia's energy regulator warns against holding fuel

Zambia's energy regulator on Monday warned Oil Marketing Companies (OMCs) against hoarding the commodity in order to create an artificial shortage.

The Energy Regulation Board (ERB) said its investigations have revealed that some fuel traders were hoarding the commodity and only serving it to customers who have accounts with them, a move which is contrary to their license conditions.

The license conditions state that the licensee shall not hoard petroleum products, nor show undue preference to, or exercise undue discrimination against any particular persons or people of any class as regards any aspect of the provision of petroleum products, she added.

Kwali Mfuni, the energy regulator's spokesperson said that the energy regulator has taken stern measures to guarantee smooth supply of fuel in various parts of the country and that the fuel situation was expected to normalize.

"The board is, therefore, appealing for an end to the unnecessary speculation of fuel shortages, which could create anxiety and consequently result in panic-buying," she said.

The official further said the fuel supply situation has slightly improved following the government's decision to allow OMCs to import refined products while crude oil stocks have started arriving at the country's sole oil refinery, the Indeni Petroleum Refinery.

Zambia has witnessed shortages of fuel in recent weeks, resulting in long queues. Endit