Friday, March 29, 2024

Government threatens Oil marketing companies

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People waiting for fuel during the 2009 fuel shortage in Lusaka
People waiting for fuel during the 2009 fuel shortage in Lusaka

Energy Minister Christopher Yaluma has threatened to revoke licences of Oil Marketing Companies(OMCs) that will be found wanting over the fuel shortages in Lusaka.

Mr. Yaluma said Lusaka Fuel Depot has doubled sales of fuel and has wondered why there is a shortage of fuel.He has since summoned managements of OMCs to his office by Wednesday to get facts from them.

Mr. Yaluma said the OMCs must be holding on to fuel in anticipation for a fuel pump price hike.He said Government has no intention of increasing fuel prices.

The Energy Minister said Government is in fact considering reducing fuel further if an analysis of the international market proves more positive.

Mr. Yaluma who was flanked by his Deputy Charles Zulu was speaking in Lusaka on Tuesday evening when he took an impromptu tour of Lusaka Fuel Depot and selected fuel service stations.

The Energy Minister said OMCs have no excuse to record fuel shortages because they have Importation Licences.

Lusaka Fuel Depot Manager Victor Kanyika agreed that Oil Marketing Companies have no reason to record fuel shortages.Mr. Kanyika said this is because Lusaka Fuel Depot has doubled the number of litres being sold out.

12 COMMENTS

  1. Stop lying and threatening people and let them do there work. No one threats you. Its cheap politics to blame others for your failures. If you over supply the market how are they going to with hold the stocks and for how long. Kaunda tried the threats formula and it did not work. Even the holding and blaming excuse was kaunda’s way of running the country and taking over companies. You should learn from the mines fiasco and stop the threats. You are adding more pressure to the confussion and the economy. You have to understand that if the dollar exchange rate has gone up the oil companies will not be able to supply fuel at old prices. Its imple economics. You have been busy firing people when the kwacha has been in free fall and now it the fault of oil commpanies!

    • Bushe is it difficult to engage in dialogue must it always be threats? What education does this I$$$ of a minister subscribe to? Wasn’t he the man referred to as “Chipuba” by one leader fire such people reward them by sending them to foreign service but please spare us this nonsense

    • Should we yap every time without empirical analysis? You have been told that these oil companies have doubled the amount they get from GRZ depots , hence the shortage should not be there. What is happening is that the oil companies are holding fuel in anticipation of price increase. To you this explanation has not sank in your head. Any way you are a desperate person i forgot that fact.

  2. I said it. With the free fall of the kwacha, Expect fuel shortages or increase in pump prices. 10 Kwacha to a dollar hire we go. PF nafuti nafuti. Wise voting by all loving zambians that put P.F into power. Enjoy the music will it continues playing. This government is working so hard to develop this poor nation. Come 2016 P.F to continue with its vision.

  3. Expect the Kwacha to receive more battering if the sterling (pound) has softened by approximately 23% against the dollar since October 2013 what do you expect from the volatile Kwacha?

  4. This is not an artificial shortage. Yaluma thinks he is talking to manguams. The truth is this was coming and government thought it would market rectify. Instead of addressing the issue they decided to go on holidays. Now even if we were to have the money it will take to correct the situation it takes 7-10 weeks to have everthing lined up. The truth is demand has soared and stocks are super low. Transporters are doing business in elsewhere because we are too slow to settle invoices. Incompetence incompetence incompetence is what is causing this. Elo mwala Dancer NYAU TUNE YAKWA EDGAR WITH RB AT BASE. WE TOLD YOU SO!

  5. so upnd dweebs and goons think that if their stone faced wamuyaya was in power, the kwacha would not lose value nor will there be this situation? Currencies are tumbling the world over and external forces have little to do with our local situations, we are not an exception except we ought to be better prepared.

  6. The panic fuel purchasing syndrome that has gripped motorists is not helping in mitigating the fuel shortage just like there would be a run on a bank if there are misconceived perceptions about an eminent closure.Cancelled contracts and reviews on crude oil purchases for INDENI also has a toll on the current situation not to mention some political transportation contract cancellations,its anyone guess!

  7. @ vigin angel the Kwacha is losing ground against all major currencies not just the dollar, explain that. Second we all knew this was coming I for instance blogged about this 9weeks ago. How could we not avoid a looming crisis that circumstances gave us fair indication was coming? Of all our neighbours why are we the ones taking the full blunt of the world economy? The answer is simply a lack of planning and competence. In 9 weeks we could not correct the logistics before we got to this point? Say what you must but the evidence is plain. Yes a more competent economic team would have avoided this. You are willowing in absolute denial the truth is right now our government is failing us. We told you so!

  8. @loadist, you fore saw 9 weeks ago? Its easy to extrapolate micro and macro economic trends on twisted logic, theories,concepts and tools of analysis but ours is no special case. What better economic team would have deciphered what’s pertaining? Let’s not be myopic because of ethnicity bias and discard common logic- it’s not the first time this scenario is occuring- let’s not live in a pathetic fallacy world!

  9. @Jasmine myopic and twisted yet accurate. I will take that. Yes it is very simple to extrapolate or predict certain economic events based on simple economic theory and historical data. That is why it is surprising that the people charged with directing our economy could not have applied simple theory and mitigated these effects. The truth is the PF trapped itself and our economy with them. An economy primarily driven by fiscal measures eventually implodes. All it takes is a slight down fall in government income and deficits become unmanageable. We need real growth not hoping paving roads by itself will stimulate enough jobs to grow consumer spending. In other words ” tuma government contracts tulapwa!” This could have been a cushioned fall not a complete tumble down. We told you so.

  10. Yes the meeting with OMCs can solve the problem in the immediate term if what the Minister is saying is true. The Minister and his team should ask the OMCs that have lifted fuel from the Depot by looking at the number of litres they have lifted in the past weeks and then ask them to show which filling stations they have delivered to and quantities then proceed to verify with sales! It is a matter of carrying out a snap audit within Lusaka and if the statement from the Depot Manager is true then some culprits can be caught! Then thereafter we look at a long term solution in the wake of a strengthening dollar and weakening global oil prices at the back of our falling copper prices!

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