“Streamlining Zambia’s Fuel Procurement”
… Dr. Mubanga Advocates for a Transparent, Efficient Tendering System to Control Fuel Costs and Enhance Industry Engagement
By Francis Maingaila
Lusaka, Zambia24 (26-08-2024) – The Oil Marketing Company (OMC) has called on the Zambian government to implement an oil procurement tendering system similar to that used by Tanzania.
Dr. Kafula Mubanga, President of the OMC, emphasized the effectiveness of the Petroleum Bulk Procurement Agency (PBPA) in Tanzania, noting its successful management of petroleum importation and distribution.
Dr. Mubanga praised the PBPA’s structured approach to international tenders for bulk petroleum supplies, including MOGAS, GASOIL, and JET A1.
He highlighted that this method enhances efficiency and cost-effectiveness, which could benefit Zambia’s fuel procurement system.
He explained, “The PBPA eliminates delays in procurement through a well-organized and transparent process that includes clear timelines and standardized procedures.
This system ensures that all bids are evaluated fairly and promptly, reducing the potential for corruption and inefficiencies.”
Dr. Mubanga also stressed the importance of engaging stakeholders within the oil industry in the procurement process.
“Involving industry experts and stakeholders helps to streamline the procurement process and avoid duplicity,” he said.
He added that such involvement ensures that all parties have a clear understanding of the requirements and expectations, which reduces misunderstandings and conflicts.
“By integrating industry knowledge into the procurement process, we can create a more cohesive and efficient system,” Dr. Mubanga noted.
He further explained that involving industry professionals helps to prevent repetitive and redundant procedures, which can lead to delays and increased costs.
“When industry experts are part of the process, they bring valuable insights and practical experience that can help design a more effective procurement framework. This not only improves transparency but also accelerates the overall procurement timeline,” Dr. Mubanga asserted.
Dr. Mubanga warned that as long as the government remains involved in the procurement system for petroleum products, fuel costs will continue to rise.
“Unfair practices and a lack of transparency in the current system are driving up fuel prices,” he said.
He cautioned that the government’s direct involvement creates opportunities for inefficiencies and corruption, leading to higher costs for consumers.
“If the government does not detach itself from the procurement process, we will continue to see escalating fuel prices that burden the public and hinder economic growth.”
He emphasized that removing government interference and adopting a more transparent and independent procurement system is essential for controlling fuel costs.
“Only by reforming the procurement process and ensuring it is managed impartially can we hope to stabilize fuel prices and provide relief to consumers,” Dr. Mubanga concluded.
Concerns about the transparency of the current procurement process highlight the need for reform. The government is expected to monitor market indicators and maintain competitive pricing to support economic growth and stabilize Zambia’s fuel supply.