Copperbelt Province sees increase in filling stations

THE COPPERBELT has seen growth in the number of fuel stations following the increase of motor vehicles and mining activities in the province.

Energy Regulations Board (ERB) confirmed having issued a total of nine licences for filling stations categorised as retail of petroleum products among them, Kobil Zambia Limited, Petrotech Oil Corporation, Continental Oil Company Limited, Oryx Oil Zambia Limited, Engen Petroleum Limited, Petroda Zambia Limited, Spring Energy Corporation, Samfuel Limited, Suban Petroleum Zambia, Luchiba and Mount Meru Petroleum Zambia.

ERB communications officer Kwali Mfuni said in a press query that out of the re-registered filling station, six had a presence in Kitwe and Ndola.

“During the period January to July 2010, the ERB has issued out nine licences for the right to engage in the retail of petroleum,” said Ms Mfuni.

She said that the issued licences were for a period of five years from the date of issue and that apart from Kitwe and Ndola, ERB also issued licences to petroleum dealers based in Mpongwe, Luanshya and Kawambwa.

Road Transport and Safety Agency (RATSA) principal publicity officer Mercy Mwila confirmed the increased number of motor vehicles in Kitwe to 24,160 and 36,690 in Ndola out of the national total of 317,542.

The increase of fuel service stations can be attributed to British Petroleum (BP) plc’s intention to pull-out from the Zambian market.

BP who first started operating in Zambia in 1963 with more than 57 filling stations at the time they announced their intended pull-out last March could leave a huge gap which new starters would fill up.

It is also hoped that the services of some of BP’s 113 employees likely to separate from the company would be of great relief to emerging oil marketers.

Samfuel, one of the latest fuel service stations can rightly be referred to as ‘new kid in town’ going by their grand entry in the Zambian oil marketing arena.

Samfuel chief executive officer John Samaras believes that as much as foreign investors are welcome, local business persons are capable of efficiently running the oil business.

“As Zambians, we believe that given a chance, we can run as efficiently as other foreign oil marketing companies can,” Mr Samaras said.

Confirming their readiness to provide quality oil service, Samfuel has 1.1million fuel storage capacity at its neatly set-up depot along Kabwe Road in Ndola’s industrial area.

Samfuel has so far, created 27 jobs across their newly established fuel stations on the Copprebelt where an extra 200,000 litres of fuel is stored for distribution.

Kitwe has seen the first ever Engen service station on the Copperbelt at the freedom park junction in Parklands whose presence attracts local and motorist in transit.

Engen Freedom Park station general manager Ravi Salvi said the station’s central location and a 24-hours operated quick shop, wimpy fast foods and Tembo’s mini mart provided motorist with one-stop services.

“We are centrally located, with a quick shop, wimpy fast foods and Tembo’s mini mart, motorists are given an environment to do more than just refueling,” Mr Salvi said.

With a growing number of fuel service stations in Kitwe, Freedom Park Engen station which has created 63 jobs sells 270,000 litres of fuel per month.

Mr Salvi explains how their station managed to continuously supply fuel to the Zambian motorists at the time Zambia experienced nation-wide fuel shortages early this year.

“Our reliability can be traced to a time when we managed to supply fuel at the time the rest of the country was experiencing fuel shortages. We remained wet when others were dry because of our foreign fuel sources,” said Mr Salvi.

Suban Petroleum Zambia Limited too is another one of the fuel dealers who have taken advantage of the growing vehicle population by establishing fuel stations across the Copperbelt.

Suban managing director Mohamed Farah said his company was one of the few indigenous fuel dealers with the biggest storage capacity of 1.5 million litres apart from BP and Total in Zambia.

“Yes, there is good fuel business on the Copperbelt, Suban has the biggest storage capacity of 1.5 million litres apart from BP and Total,” said Mr Farah. The company had so far built five stations, apart from one in Lusaka on Great North road, two are in Ndola on Masala Road and Chisokone avenue, one in Kitwe situated in Accra Road and was currently constructing one in Kasumbalesa border post in Chililabombwe.

Mr Farah said Suban’s initiative to construct a fuel station in Kasumbalesa was one way of changing the approach of doing business by setting up stations in areas that are not serviced.

“We are targeting areas like Kasumbalesa, Mkushi and Mbala which have no filling stations because we do not want to construct stations in areas where there is already presence of other stations,” Mr Farah said.

He said the construction project was part of the company’s K25 billion expansion programme which will create more jobs other than the existing 68 Zambian workforce on the Copprebelt.

Kitwe District Chamber of Commerce president Berry Mwango said his association appreciates the ‘scramble’ for fuel service stations’ space describing the development as an alternative for motorists to go for the best service.

He said that unlike in the past when motorists had to drive to the town centre for fuel, fuel stations were put up in the nearest convenience locality.

“I live in Parklands myself, but I do not have to drive into town to go and pick up fuel and come back home to prepare for the daily programmes,” Mr Mwango said.

He said that though Government regulated fuel pricing, individual fuel stations offered varying competitive prices that were attractive to motorists.

Fuel stations owners too have embraced the liberilised fuel industry and have been contributing to national economic growth through the payments of statutory taxes.

The industry has also created jobs through the construction of new stations and rehabilitation of the old ones for oil companies’ suppliers and fuel attendants who now have a wider job market.

A survey conducted in Kitwe recently revealed that the cheapest fuel station was selling diesel at K6,770 per litre while petrol sold at K7,430.The most expensive was selling diesel at K6,836 and petrol at K7,504.

ERB has observed that with the current trends of increased number of fuel service stations dotted around the Copperbelt, it is expected that illegal fuel vending would be reduced, thereby, curbing the risky practice.

For a long time, illegal fuel vendors have taken advantage of inadequate services by fuel stations that are spread out in far distant locations.

It is feared that illegal fuel vendors sell diluted fuel and that they transport, transfer, store and dispense fuels in an unregulated and hazardous environment.

The risk of using diluted fuels causes loss of power, engine over-heating, increased fuel consumption, cracked piston rings and premature injector pump failure to motor vehicles.

[Times of Zambia]