The recent conversion of the Tanzania Zambia Mafuta (TAZAMA) pipeline from a crude oil feedstock transportation system to a refined diesel transportation system is not expected to put local fuel transporters out of business. This was confirmed during a press briefing held at the Government Complex last Friday, where a government spokesperson said, “These developments should not cause anxiety among petroleum transporters. Local fuel transporters will still be involved in ferrying the commodity from the main storage depots and distributing across the country.”
The reconfiguration of the TAZAMA pipeline is expected to result in reduced fuel landing costs, which will eventually lead to lower pump prices. “The re-configeration of the pipeline will enable it to pump and transport refined low-Sulphur diesel to Indeni Refinery, which has now become an oil marketing company (OMC) with storage depots,” the spokesperson added.
The conversion of the TAZAMA pipeline to pump and transport refined low-Sulphur diesel is progressing well. The government has completed 15% of the cleaning and conversion process, and it is expected to be completed within the first quarter of 2023. “The conversion process should be completed within the first quarter of this year and at the latest the beginning of the second quarter,” the spokesperson confirmed.
Once completed, the TAZAMA pipeline will be able to pump 90 million litres of diesel per month, ensuring a reliable and sustainable fuel supply at a reduced cost. The government is committed to stabilizing and reducing the cost of petroleum products in the country. “The New Dawn Government is commited to ensuring sustainable fuel supply, an important catalyst in the economic development of the country. Further, the Government, through the Ministry of Energy, will continue working on measures to stabilize and reduce the cost of petroleum products on the Zambian market,” the spokesperson stated.
In conclusion, local fuel transporters in Zambia can breathe a sigh of relief, as the TAZAMA pipeline upgrade is not expected to put them out of business. “These developments should not cause anxiety among petroleum transporters,” the spokesperson emphasized. The government is working hard to ensure a sustainable and cost-effective fuel supply for the country.