PTAZ Urges Ministry of Energy to Sue Firms for Failing to Engage Local Transporters
The Petroleum Transporters Association of Zambia (PTAZ) has called on the Ministry of Energy to take legal action against Oil Marketing Companies (OMCs) for their failure to comply with Statutory Instrument Number 35 of 2021. This legislation mandates OMCs to allocate a minimum of 50 percent of fuel transportation contracts to local companies.
Expressing disappointment over the continuous disregard for the law by OMCs, Ministry of Energy Permanent Secretary Chisangano Zyambo recently criticized their non-compliance with Statutory Instrument Number 35 of 2021 and the use of local transporters.
Benson Tembo, the Secretary General of PTAZ, lamented the persistent violation of the directive by Minister of Energy Peter Kapala by OMCs despite numerous reminders. In a phone interview, Mr. Tembo highlighted the unjust disadvantage faced by local transporters as OMCs continued to favor foreign transporters.
The dominance of East African transporters in the local petroleum industry has exacerbated the challenges faced by Zambian transport companies, and PTAZ is now urging swift and decisive action to rectify the situation.
The dispute underscores the importance of enforcing local content laws to ensure equitable opportunities for domestic businesses and promote economic growth.