Zambia stepping up efforts to reduce reliance on imported fuel-ERB

The Energy Regulation Board (ERB) says Zambia is stepping up efforts to reduce its reliance on imported fuel through the promotion of alternative energy sources, including electric vehicles and biofuels.

In an interview with the media, ERB Public Relations Manager, Namukolo Kasumpa, said the board is currently developing a comprehensive framework for electric vehicle charging infrastructure and pricing.

Ms Kasumpa explained that increased adoption of electric vehicles is expected to significantly cut petrol and diesel consumption in the transport sector.

She added that the ERB has also put in place a regulatory framework to support the production and use of biofuels such as biodiesel and bioethanol.

Ms Kasumpa noted that this includes licensing requirements, technical standards and a pricing framework designed to ensure producers recover their costs while keeping fuel prices affordable.

“Government policy now allows oil marketing companies to produce ethanol and blend it with petrol by up to 20 percent, a move expected to reduce fuel imports once local production scales up,” she said.

Meanwhile, the ERB said it is working closely with stakeholders to ensure energy security and price stability.

Ms Kasumpa noted that measures include monitoring fuel stocks, coordinating with suppliers and responding to global market changes.

She however, noted several challenges, including higher production costs for ethanol compared to imported fuel, and delays in financing renewable energy projects.

Ms Kasumpa indicated that measures such as tax exemptions and revised pricing models are being used to attract investment and support the sector.

She expressed confidence that with continued policy support and stakeholder collaboration, alternative energy solutions will play a key role in reducing Zambia’s dependence on imported petroleum products.

In a separate interview, Chamber of Commerce Acting Chief Executive Officer, Emmanuel Mumba, said the measure by the government is a targeted intervention aimed at reducing the impact of fuel price increase on the domestic economy, despite resulting in reduced government revenue.

Mr Mumba explained that while fuel pump prices have still increased, the suspension has significantly moderated the extent of those increases.

He noted that without the measure, fuel prices would have risen much higher, placing greater strain on consumers and businesses.

“The policy is helping to contain inflationary pressures by easing the cost of fuel, which is a key input across all sectors,” he said.

Mr Mumba further stated that businesses, particularly in transport, agriculture, mining, and manufacturing, are benefiting from reduced operational and logistical costs, enabling them to maintain production and avoid passing on the full burden of rising costs to consumers.

He however clarified that the measure will not lead to immediate reductions in the prices of goods and services, but will instead slow the rate of price increases, helping to stabilize the cost of living and prevent sharper rises in transport and production costs.

Government recently temporarily suspended excise duty and zero-rated VAT on petrol and diesel from April to June 2026 to cushion consumers from rising international oil prices.