New Analysis Paves the Way for a More Reliable Fuel Supply in Zambia
Cities and Infrastructure Growth Zambia (CiG-Zambia) has presented a Petroleum Sub-Sector Integration Scope Study Report to the Ministry of Energy, aimed at supporting the inclusion of the petroleum sub-sector in Zambia’s Integrated Resource Plan (IRP).
The report was presented to Permanent Secretary–Energy Ephraim Munshifwa and officials from the Department of Petroleum. It outlined key challenges facing the sector, including demand and supply constraints, rising petroleum consumption, and market concentration among a few dominant Oil Marketing Companies despite a large number of registered players.
The study highlighted that petroleum consumption is largely driven by the transport sector, with more than one million vehicles recorded between 2015 and 2022. Over half of these vehicles are more than 20 years old, contributing to high carbon emissions.
The report also noted gaps in data on vehicle mileage and fuel efficiency for imported vehicles, limiting effective planning.
CiG-Zambia commended the Government for introducing the Drag Reducing Agent (DRA), which has improved diesel supply efficiency, and recommended investment in a new oil pipeline, subject to an independent cost–benefit analysis.
Responding to the presentation, Prof. Munshifwa said the Government had introduced the Open Access Framework to enhance efficiency and transparency in petroleum supply.
He noted that prior to the reform, Government had accumulated approximately US$800 million in debt to suppliers due to direct procurement arrangements.
He welcomed the study and disclosed that the Ministry will develop a 10-year Petroleum Master Plan to address long-term sector challenges, while safeguarding the State from potential liabilities arising from private sector investments.
