IMPENDING REDUCTION IN FUEL PUMP PRICES LIKELY TO SUSTAIN ERRATIC SUPPLY OF PETROL IN THE COUNTRY-OMCs

The Oil Marketing Companies Association of Zambia has warned that the impending reduction in fuel pump prices at the end of this month has the potential to sustain the inconsistent supply of petrol as witnessed in recent weeks.

Association President Dr. Kafula Mubanga is however optimistic that government will consider incentivizing the industry by changing the tax structure and making other statutory payments favorable to attract more private investment.

Dr. Mubanga explains that with continuous problems to OMC’s profit margins due to transportation expenses, a further downward adjustment of petrol pump prices this month might see the country continue facing inconsistent availability of petrol on the market.

According to Dr. Mubanga, with the international price of crude oil falling significantly and the kwacha rebounding to around 17 to the us dollar, fuel will most likely be reduced at the next review, posing additional challenges to OMC’s profit margins, which have recently caused a slowdown in product importation.

Kitwe and other parts of the country have witnessed intermittent petrol supply in the last two weeks, attributed to a slowdown in the importation of the commodity by OMC’s due to meager profit margins.