Indeni Energy Limited, a Zambian oil refinery company, is set to embark on commercial competition with other oil marketing companies in the country. According to the Board Chairman, Watson Lumba, the company expects a drastic reduction in the pump price of petroleum for at least a month as it processes commingled feedstock that was recently cleared from the TAZAM pipeline.
Lumba explained that the fuel to be processed from the old feedstocks will be cheap and sold through other oil marketing companies, owing to Indeni Energy’s state-of-the-art storage facilities located at an inter-connection point between Tazama pipeline and Indeni. This means that the TAZAMA pipeline will operate on first come first serve basis, with oil marketing companies free to procure diesel from the middle east and transportation to Ndola through the pipeline for onward distribution to other parts of the country.
Furthermore, Indeni Energy is in the process of securing 30 million liters of diesel as the first consignment to come through the TAZAMA pipeline, which is jointly owned by the Zambian and Tanzanian Governments. Lumba noted that this will see a drastic reduction in the cost of diesel due to a reduction in transportation costs as well as an increase in the lifespan of the country’s road network.
However, Lumba clarified that products such as Kerosene, Jet A1 and Petrol will continue to be brought into the country by road, as the pipeline can only transport diesel. Despite this, the commercialisation of Indeni Energy means that the company is ready to compete with other commercial oil marketing companies and will operate various fueling stations across the country.
The processing of the recently cleared commingled feedstock is anticipated to produce 80 million litres of Diesel and Petrol for retail procurement. Indeni Energy is now ready to compete favorably on the oil market as a commercial entity.
The reduction in the pump price of petroleum for at least a month, as announced by Indeni Energy Limited, is welcome news to many Zambians who have been grappling with high fuel prices. The move is expected to positively impact the country’s economy and ultimately improve the standard of living for its citizens.
Total confusion
Indeni Energy Limited, a Zambian oil refinery company, is set to embark on commercial competition with other oil marketing companies in the country.
Why remind us that it is a Zambian company? Can we mistake it for a Chinese owned company?
Who this govt cheating…they refined the leftover crude oil in the TAZAMA pipeline they collected now they want to make political capital with it as if they have stumbled upon an innovative long term idea. Please dont take people for fooooools!!
Whose great idea was it to leave the crude in the pipeline unrefined and opting to import by road refined petroleum products?
What they dont tell you is that this is the last batch of crude oil that will be ever processed by Indeni before its shut down…someone out there thought its smarter to procure refined fuel from abroad after all that talk of value addition. My God our freedom fighters must be turning in anger in their graves.
Indeni was strategically designed as reserve tank for Zambia, the same way FRA stores our maize. Indeni is meant to mitigate volatile petroleum shocks. Those infamous monthly fuel adjustments would have been avoided. We want 3 or 6 months reviews. We have FX as another volatile product apart from fuel followed by mealie meal.
Lack of fufu, pap, Ugali is the reason Super Ken lost grip on leadership. So guys pull your short socks up.
Where they fail short was not having a pipeline from Ndola to Lusaka where fuel storage tanks would have been located…but due to greed from haulagers who fund Politicans they failed to see this. Here again history is repeating itself a landlocked country using roads to transport fuel…very shortsighted mindset. Just one bridge collapsing on the route and you have a national crisis.
“However, Lumba clarified that products such as Kerosene, Jet A1 and Petrol will continue to be brought into the country by road, as the pipeline can only transport diesel.”
In other words expect more tankers on our roads and more damage to our roads…in the long term this is going to cost the country more and as usual benefiting the rich owners of haulage companies. We should have done everything in our powers to modernise Indeni or even build a new refinery.
This is just a short-term political decision in 10 years time we will be back again to wanting a new refinery all because the leaders of today chose Politically expediency.
*Political expediency.
Indeni to have their own service stations? Or are they supposed to sell to already existing ones?
Earlier grz announced that the retrieved commingled oil that was refined was used to pay contractors and other expenses. Where has the other volume of stock to even commercial going to come from?
Its the same stock hence the reason they state that “cheap petrol” for one month…its silly they think they are running a supermarket in Chelston. People want lasting solutions even still with the pipeline I dont see where money will be saved to reduce the price of Petrol and Jet A1 fuel which is already the highest in the region.
Those in opposition should be learning from these blunders by the Upnd. We don’t want you to start saying… Upnd left empty coffers, Upnd destroyed Indeni etc. Start learning now how to run a government successfully.
As long as Diesel can be reduced then it is a great step forward
one month only then what
Then Inflation
Indeni only functioned properly under UNIP because it was their concept. The rest are just using it as a cash cow to get rich quick. Zambian politicians would come top in the world for finding innovative ways of stealing. Imagine if that energy and focus was used to make our country better?