GOVERNMENT INTRODUCES UNIFORM FUEL PRICING FUND
By Dickson Jere
The Zambian government has introduced a Bill in Parliament that will regulate the petroleum sector and introduce the uniform fuel pricing for retail of petroleum products across the country.
The proposed law will repeal and replace the old law – the Petroleum Act of 1930 – and instead introduce “The Petroleum Development and Management Act of 2026”.
Under the new law, a “Uniform Petroleum Pricing Fund” will be established that will ensure that there is uniform retail petroleum price in Zambia and that will also monitor and track petroleum transactions.
“A holder of a license to retail petroleum product, whose cost of transportation of a petroleum product is lower than the transport cost set in the pump price build up, shall pay a contribution to the Fund at the end of each month…” the Bill reads.
“A holder of a license to retail petroleum product shall, where the cost of transportation of a petroleum product is higher than the transport cost set in the pump price build up, lodge a claim for the difference as prescribed,” the Bill reads.
The difference between the transport costs set in the pump price build up and the applicable cost of product shall only be approved by the Energy Regulation Board (ERB), adding that the amount to be claimed shall be “not be based on the actual cost of transportation of fuel products incurred by the license holder.”
The Bill also attempts to resolve the ongoing disputes over the use of the pipeline in importation of petroleum products into Zambia. It provides a legal framework that will determine how the price differentials will be calculated.
“A holder of a license to import a petroleum product using a pipeline shall remit, into the Energy Fund, the transport differential between the transportation cost using the pipeline and the applicable cost of transportation of a petroleum product approved by ERB,” the Bill reads.
The new law also will also deal with transportation of petroleum products in Zambia and bulk importation.
“A bulk supplier that transits a petroleum product through the Republic to another country shall not offload the petroleum product within the Republic,” the Bill reads.
“A person transporting a petroleum product using a Petroleum tanker shall park the petroleum tanks at a place designated or reserved for parking a petroleum tanker by any relevant written law,” the Bill reads.
This is very important Bill and I hope the Members of Parliament will find time to interrogate the nitty-gritty of the proposed law especially when dealing with the open access of TAZAMA pipeline which has been subject of debate and controversy. Most of the issues stems from the fact that there was no clear legal framework governing the use and how to deal with price differentials when importing petroleum products into Zambia.