INDENI Petroleum Refinery has offloaded six million litres of diesel onto the market to lessen shortages in different parts of the country.
Indeni director-general, Michael Faulkner, said in Ndola yesterday that the company had since Saturday introduced measures to ensure Zambia had sufficient supplies of diesel.
“We have already offloaded two million litres out of which 1.5 million litres are being distributed to different parts of the country by oil marketing companies (OMCs) and have 500,000 litres. An additional four million litres will be released to the OMCs today,” he said.
In an interview shortly after Copperbelt Minister, Mwansa Mbulakulima called on him at the refinery plant, Mr Faulkner said the diesel shortages would no longer be justified.
Mr Mbulakulima said following the action taken by Indeni, he was hopeful that the shortages would be addressed.
The minister said there was no justification for some OMCs to continue hoarding the commodity for speculative reasons.
Meanwhile, the flow of diesel in Lusaka yesterday improved although some filling stations ran out of the commodity within hours of being supplied.
Meanwhile, the Zambia National Farmers Union (ZNFU) has appealed to the Energy Regulation Board (ERB) and Government to clearly state the fuel supply situation in Zambia and the expected future trends.
Executive director, Songowayo Zyambo said in a statement yesterday that the ZNFU desired a clear statement from the ERB and the Government on the status of fuel supply in the country.
Mr Zyambo said such information would help ZNFU members plan their activities meaningfully.
“The picture portrayed so far is that oil marketing companies are the ones responsible for the erratic supply of diesel.
“We want to know why the OMCs are behaving in this way and whether the ERB and Government are putting in measures to compel OMCs to supply fuel,” the statement reads in part.
Mr Zyambo said ZNFU was concerned about the fuel price increases and the current erratic supply because agricultural activities need a lot of fuel for ploughing, harvesting, spraying and other operations.
He said the wavering supply of fuel was creating much anxiety to the farmers.
However, the ERB explained that the current consignment of fuel that was bought at a higher price necessitated the hike.
ERB board chairperson, Sikota Wina said in a statement yesterday that the other factor that had contributed to the price increase was the exchange rate which represented a depreciation of 4.3 per cent.
Mr Wina said had the Government not reduced tax on fuel in June, the price upward adjustment could have been more severe, at 25 per cent than the current 13.
“Additionally, there was no price increase from October 2007 to March 2008 and a small increment in April 2008 due to the Government subsidy which amounted to K96 billion,” he said.
This is utter nonsesne!! why should you wait till the last minuet?look at what you chaps are doing to our economy!you are very useless Indeni!
we have this fuel but its damn expensive man. i think we need to scrap off the ERB. i think some percentage of the pump price goes to pay these *****s salaries.
Is it INDENI REFINERY or INDENI SEPARATOR?
look at it from this view .the govt did close UNZA to accommodate two serious issues.
1. give themselves hefty salaries
2. increase fuel
because they knew that the monks will make noise once the implement the above issues
what does ERB do?just adjusting fuel prices right?
Yes #5, unfortunately my cousin works there and he has contributed quite handsomely to family functions!!!
#5. They regulate the energy sector which is more than just fuel prices. They approve electricity tariff adjustments, issue licences and interfere to discourage cartels in the fuel business. However their work is not appreciated becoz of the dictates of the free market. Prices are ever on the rise becoz of the prevailing situation on the international scene plus the taxes imposed on the importation of fuel.
Good question from #3 Obeserver. Can someone who has worked with Indeni tell us how significant this company is for Zambia’s oil demand? What do they and our government have on the agenda for the future?
Mwiinga why did you say that to me in the previous topic. You are foolish man.
Will the fuel price reduce ?
DO WE REALLY INDENI?
WHAT GOOD DOES IT DO TO OUR NATION,NIL…
Oil prices on the international market has reduced tremendously the past few days i.e. from about $147 per barrel to less than $115 which is quit a significant drop. Will this be reflected in the ERB fuel pricing mechanism?
WE dont need indeni, one wonders we have storage reservoir called Indeni, Malawi, Zim , Bost all dont have but we are worlds highest priced fuel charged per litre….we have thieves who have enjoyed the increase of fuel on the world market. Guess what the prices are now going down, besides since we have Indeni it means that our fuel should have been cheaper than Malwai or Zim but we have crooks at indeni who have partnered with govt officials. There is no way even if we were to buy fuel straight via the oil marketing companies we cant be paying what we are. How came the other countries dont have storage facilities like indeni and their fuel is cheaper???
We agree that govt buys fuel on contract terms but one wonders why this is done in peace meals. Zambia is stationed strategically next to Angola but we dont want to use angola oil. Can someone tell me maybe oil from Angola is not used in Vehicles??? Please tell me. Today Angola is Africas number 1 oil producing country and the US buys oil from Angola , the ship it to the US but its still cheaper to buy a liter in the US than here its in the range of K3500 in the US ….please why do have such greedy people in this country. Let alone the currency has stabilised over a long perid!
All prices have been affected , one wonders where govt priority in development is?
No. 11, do u really know what caused the shortage of diesel in the country? Please get your facts right….Do not just talk for the sake of talking…I find your thinking malicious and retrogressive.
The company you blame had nothing to do with the shortage of diesel please….No need to yap on the subject that you have so little knowledge about….
No. 13, you seem to be very ignorant about cause of the shortage of fuel. Please it is not INDENI that caused this shortage….INDENI was on shutdown because it had no feedstock to process and this feedstock is supplied by the govt and not INDENI. I did not realise that still people out there do not know the functions of the Refinery.
No. 14, I do agree with u about Angola oil, but for your own info. the refinery we have was designed to process crude from the gulf or the far east. If it means processing the angolan crude then the govt would need to re-design the plant or put up a new all together.
#17- Does it mean if we re-design the plant to suit the Angolan oil processing then we shall not be able to refine oil from the Gulf?
Zozo, u seem to have data tell us. I know that Indeni is not a refinety and nowhere in my submission have i refered to it being a refinery its a separator that i know. And for sure we dont need it, coz with Tanks supplying directly to the filling stations countries such as Malawi have fuel prices cheaper than us. For me Indeni seems to be a storage and a separator for Zambia hence my argument that our fuel should be cheaper.
Since we dont have a refinely i should know that Angola certainly refines its oil for its consumption and Zambia can import refined oil from ANGOLA otherwise strategically build an oil refinery . After all the huge investemnts in Copper , Nikel and project Uranium wil
In short already processed oil from Angola can still be cheaper than oil from the middle east let alone we are just next to angola. Need to just build a rail way join it into angola we are set and done.
Zozo tell us wht you think should be the way forward?????
Zambia has very high taxes on petroleum products. i.e
1. Import Duty on Crude oil is 25%
2. Excise Duty on Petrol is 60%
3 Excise Duty on Diesel is 45%
4 Execise Duty on Paraffin is 25%
5. Execise Duty on Heavy fuels is 35%
Thus if your car runs on petrol be aware that about 80% of the money you spend per litre is just Magande’s taxes. A gallon of petrol in Zambia cost $9 while in the USA it cost $4 and in the UK it is $7. Zambia is a very high cost economy because of govt theft thru higher taxation.
Can any one help… i have been trying to contact Indeni Oil without any joy if anyone has any inf or detail please contact me on [email protected]. Thanks
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