GOVERNMENT WARNS FUEL STATIONS AGAINST HOARDING AS GLOBAL OIL PRICES SURGE
Zambia’s fuel sector could face increased pressure following a sharp rise in global oil prices.
Energy expert Johnston Chikwanda says prices on the international market have surged by more than 50 percent in the past ten days, warning that if the trend continues, fuel prices could double within the next two weeks.
Speaking in an interview with KBN TV News, Dr. Chikwanda says the sudden spike, largely attributed to the outbreak of conflict in the Middle East, has created uncertainty among players in the fuel supply chain, with many waiting for new pricing adjustments before making major supply commitments.
He notes that the situation also increases the temptation for some businesses to hoard fuel, as companies try to avoid potential losses caused by selling at lower prices. However, Dr. Chikwanda has discouraged such practices, warning that hoarding could worsen supply challenges and disrupt the market.
He adds that without stronger regulatory frameworks, it may be difficult to effectively curb such practices in the sector.
Meanwhile, Energy Minister Makozo Chikote has warned filling station owners against hoarding fuel in anticipation of price increases linked to ongoing tensions in the Middle East.
Mr. Chikote directed the Ministry of Energy, the Energy Regulation Board and TAZAMA Pipeline to closely monitor fuel supply activities to ensure that service stations do not withhold products from the market.
He warned that any operators found engaging in hoarding will face appropriate disciplinary action.
By Elizabeth Kayombo
KBN TV