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.