Govt anticipates drop in prices as diesel imports arrive Dar es Salaam, set to be pumped into TAZAMA pipeline

The Zambian government has confirmed the arrival of a 105,000 metric ton shipment of diesel at the Port of Dar es Salaam, Tanzania, marking a milestone in the implementation of the Open Access (OA) System for fuel distribution.

Ministry of Energy Permanent Secretary, Peter Mumba, stated that the shipment, set to be pumped into the TAZAMA pipeline, was expected to lead to further reductions in diesel prices locally, positively impacting the broader economy.

Mumba confirmed that this was the first shipment under the newly launched OA system and a demonstration of Oil Marketing Companies (OMCs) actively participating in the open access initiative, which aligned with the government’s goal of a competitive, private-sector-driven fuel market.

“The arrival of the shipment proves that the open access system is functioning as intended, and we anticipate increased participation in the coming months,” Mumba stated during a media briefing at the Energy Regulation Board (ERB) headquarters in Lusaka on Wednesday.

He also addressed concerns about the capacity of TAZAMA’s storage facilities in Tanzania, refuting claims that the tank farms were full and unable to handle the shipments.

Mumba clarified that both the TAZAMA pipeline and storage facilities in Tanzania had the adequate capacity for open access fuel shipments.

While the importation of petrol, kerosene, and Jet A-1 fuel will continue by road, Mumba emphasized that the open access system’s implementation directly led to a reduction in the price of diesel from K32.54 to K30.23 per liter.

The Permanent Secretary also refuted accusations that the Zambian government was favoring certain OMCs in the open access system, affirming that the system was transparent, non-discriminatory, and provides equal access to all eligible OMCs.

“The TAZAMA open access framework is a transformative reform aimed at fostering competition, transparency, and efficiency in Zambia’s fuel industry,” Mumba said.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.