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.