Reported by: The Agency Media.
Date: 25th March, 2025.
Lusaka, Zambia.
The Zambian Government through the Minister of Energy Hon. Makozo Chikote has strongly refuted claims that fuel imports under the open access framework are being obstructed due to storage congestion caused by Agro-Fuel Investments.
In a ministerial statement to Parliament, the Government reaffirmed its commitment to transparency, competitiveness, and stability in the petroleum sector while outlining recent progress and correcting what it described as “misleading” media reports.
The clarification follows a 20th March 2025 report by News Diggers headlined “Open Access Hits a Snag as Agro Fuel Fills TAZAMA Reserve Tanks, Hinders Offloading of a Cheaper Diesel.”
The Energy Minister Hon. Chikote began by reflecting on the challenges inherited by the New Dawn Government in 2021 under President Hakainde Hichilema’s leadership. At the time, Zambia’s fuel supply system was burdened with opacity, inefficiencies, and unsustainable debt. The government faced inherited fuel obligations totaling USD 477.8 million, which escalated to USD 877.1 million by March 2024 due to poorly negotiated contracts.
Key Reforms Transforming the Sector
Determined to overhaul the sector, the government launched sweeping reforms designed to foster efficiency and fairness:
- Eliminating direct state involvement in fuel procurement and financing, enabling private-sector competition and reducing fiscal risk.
- Converting the TAZAMA Pipeline to transport refined diesel rather than crude oil, cutting transport costs and improving delivery times.
- Implementing an open access framework, giving all eligible Oil Marketing Companies (OMCs) the ability to participate, fostering price competition and greater accountability.
These reforms have already translated into lower costs for consumers and expanded opportunities for Zambian-owned businesses in the petroleum supply chain.
The Minister emphasized that claims of deliberate obstruction of cheaper diesel are unsubstantiated. The pipeline conversion process began following a competitive tender in September 2022 for kerosene and diesel to clean and displace crude oil residues. The contract was awarded to Agro-Fuel Investments in partnership with Vitol Bahrain, with TAZAMA completing the conversion on 16th March 2023.
To maintain stability during the transition to open access, selected OMCs were granted interim use of the pipeline while the framework was finalized. The Minister confirmed that the open access system is now fully operational, with the first shipments under this regime expected to arrive in April 2025.
Competitive Bidding Driving Down Costs
The government has conducted two successful tender cycles, demonstrating the effectiveness of competition:
April 2025 Tender Results (USD 84 per metric tonne premium):
Lot 1: Titanium/ADNOC (35,000MT)
Lot 2: Boltt Energy (35,000MT)
Lot 3: Indeni Energy (35,000MT)
May 2025 Tender Results (USD 54 per metric tonne premium):
Lot 1: Agro-Fuel/Vitol (35,000MT)
Lot 2: Titanium/ADNOC (35,000MT)
Lot 3: Dalbit International (35,000MT)
The sharp decline in premiums from April to May underscores how open competition is delivering better prices for Zambians.
TAZAMA Ready for Upcoming Cargoes
Contrary to recent media allegations, the Minister assured Parliament that TAZAMA’s storage infrastructure in Dar es Salaam is fully prepared to receive and offload upcoming fuel cargoes under the open access framework. “There is no obstruction, nor is there monopolistic behavior in place. Our system has been designed to accommodate all participants fairly,” the Minister stated.
The Government reiterated its mission to ensure that the fuel sector operates transparently, competitively, and sustainably — with the benefits reaching every Zambian. This commitment, the Minister emphasized, is not merely about securing affordable fuel but also about empowering Zambian entrepreneurs and protecting the economy from past mismanagement.
“This is a new chapter for Zambia’s fuel sector — one of accountability, fairness, and opportunity for all,” the Minister concluded.
The Agency.