Former MP, Banda, piles pressure on govt over single-sourcing in energy sector

Former Kasenengwa Member of Parliament, Sensio Banda, has criticized the recent ministerial statement on fuel procurement, arguing that it failed to address why Zambians continue paying high fuel prices until the Open Access Framework for Low Sulphur Gas is implemented in the coming weeks.

Banda alleged that the government’s exclusive procurement of fuel from Devon and Agro-Fuel remains a major concern, suggesting that the move prioritized profits over affordability.

On Tuesday, Energy Minister Makozo Chikote, in his ministerial address, stated that the open access framework had introduced competition, forcing Oil Marketing Companies (OMCs) to reduce profit margins, as demonstrated in recent tenders.

Reacting to this, Banda noted that Agro-Fuel/Vitol, a key prequalified bidder, had already lowered prices under the new framework.

Read more: Oil marketers welcome govt’s suspension of Agro Fuel contract, insist on competitive bids

“Previously, expensive fuel was supplied through exclusive contracts with Agro-Fuel, which negatively impacted Zambians.

“This shift suggests that the earlier decision to single-source costly fuel was driven by super-profit motives, benefiting suppliers and officials in power,” Banda said in a statement issued on Wednesday.

While acknowledging the open access framework’s aim to enhance transparency and competition, Banda maintained that single-sourcing lacked these principles.

He pointed out that the Oil Marketing Companies Association of Zambia and other OMCs had raised concerns over the government’s continued reliance on exclusive deals through the pipeline, citing fairness and transparency issues.

“Some OMCs claimed they could have offered better pricing than Devon and Agro-Fuel, but the decision appeared to serve the financial interests of a select few. Given Zambia’s economic challenges—including inflation, drought, food insecurity, and currency instability—it is perplexing that the government chose to import expensive fuel,” he said.

Banda warned that high fuel costs, coupled with electricity exports, had exacerbated energy poverty and placed additional strain on struggling citizens.

He further accused the UPND government of implementing policies that had led to rising inflation, increased living costs, declining SME productivity, business closures, and overall economic deterioration.

“Reliable and affordable energy is crucial for economic growth, business sustainability, and national development. The government must prioritize transparency and fairness in fuel procurement to ease the burden on Zambians,” Banda said.

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