Policy Analyst Kelvin Chibomba is urging the government to consider recapitalizing Indeni Petroleum Refinery as it still has the potential to mitigate any possible shocks in the price of fuel on the international market.
Mr Chibomba argues that against the government’s earlier decision to place Indeni Refinery on care and maintenance while working towards turning it into an oil marketing company, it will be prudent to revert to the firm’s earlier core operations because of its value chains.
He tells Phoenix News that another option is for government to find an equity partner to acquire the minority shares as it is the alternative financing option to enable Indeni to produce petroleum products beyond 100 per cent.
Further, Mr Chibomba is of the view that allowing the private sector to wholly supply fuel to the government will continue to cause discrepancies in pricing as the private sector is only interested in profits.
The government last year placed Indeni Petroleum Refinery on care and maintenance as part of reforms aimed at promoting efficiency and stability in the petroleum subsector.