By TROY MUKUPA
Lusaka, Zambia – The Democratic Progressive Party (DPP) has expressed deep concern over the ongoing diesel shortage in the country, saying the situation is exacerbating the current load-shedding crisis.
DPP President Antonio Mourinho Mwanza stated that diesel plays a critical role in the economy, and the shortage is having far-reaching consequences.
“The current shortage is deeply a concern, especially with the ongoing load-shedding. Diesel is a vital component in the production and transportation of goods and services, and its shortage will have a ripple effect on the economy,” Mwanza said.
He noted that the shortage is particularly worrying given the country’s unreliable electricity supply, saying many businesses and individuals rely on diesel to power generators and sustain their economic activities.
“People rely on diesel to do their economical activities in the absence of electricity. The shortage is therefore not just a minor inconvenience, but a major threat to our economic well-being,” Mwanza emphasized.
Mwanza attributed the shortage to several factors, including a $250 million funding shortfall at the Indeni Petroleum Refinery, which he says had crippled its ability to procure and store fuel.
He also pointed to the Energy Regulation Board’s (ERB) pricing model, saying it does not reflect true import and operational costs, forcing Indeni to operate at a loss.
“The ERB pricing model is flawed, and it’s forcing Indeni to operate at a loss. This is unsustainable and will continue to compromise the country’s fuel supply,” Mwanza said.
He also cited a weak policy framework as another contributing factor, saying the lack of a clear fuel security and investment policy has weakened Zambia’s entire supply chain.
“The absence of a clear policy framework has created uncertainty and discouraged investment in the sector. It’s time for the government to take a more proactive approach to addressing our fuel security needs,” Mwanza said.
Mwanza called for immediate action to address the crisis, outlining a series of measures to be implemented within the next 0-3 months. These include importing emergency diesel supplies from Angola, Tanzania, and South Africa, providing financial support to Indeni to restock and stabilize operations, building national fuel reserves to cushion future shocks, and reviewing the ERB pricing model to reflect actual market costs.
“The government must act now to address this crisis. We cannot afford to wait any longer,” Mwanza said.
The DPP has also proposed the establishment of a National Fuel Taskforce to manage the crisis transparently and ensure that the country is prepared for future shocks.
