The Zambia Competition Commission (ZCC) has welcomed government decision to hike duty on fuel from five percent to 25 percent.
ZCC Executive Director Thula Kaira said the move is necessary in protecting the energy sector which is key for the development of the country.
He explained that government should always be there to protect the local industries if the nation is to see growth in different sectors of the economy.
Mr. Kaira told ZANIS in an interview in Lusaka that Indeni oil Refinery Company and TAZAMA pipeline Limited are capable of producing enough fuel to supply the local market demand.
“Indeni is very capable of supplying oil that can be enough for the local market.” he said.
He explained that there is no need for Oil Marketing Companies (OMC) to import fuel when there are companies within the country that produces the some commodity.
He noted that OMCs can only import fuel when there are not enough stocks to meet the local demand.
“OMC should only think of buying fuel abroad when Indeni and TAZAMA do not have sufficient stocks.” he said.
He said Indeni and TAZAMA plays an important role towards the development of the energy sector, hence the need to promote the companies by buying all the oil products in the country.
The ZCC Executive Director pointed out that people in the energy sector should develop the mentality of ensuring that they utilize what is in the refinery reservoirs before thinking of importing it from some way else.
Mr. Kaira observed that government has been facing a lot of challenges in producing fuels that ends up in reservoirs and does not save its intended purpose.
He has further challenged OMC in the country to embrace the decision and help government develop the energy sector.
Last week Government increased duty on fuel from five percent to 25 percent saying the decision is aimed at discouraging dealers from importing finished petroleum products but buy fuel from TAZAMA and Indeni and prevent them from collapsing.
ZANIS/MM/MKM/ENDS……