• Unbearable pricing of fuel on international Market is a challenge for multinational OMCs.
• Local OMCs should be allowed to participate fairly on the importation of fuel.
• Full participation of Zambians should be encouraged.
Oil Marketing Companies Association of Zambia says single sourcing of multinational Oil Marketing Companies (OMCs) for fuel procurement contracts by Government risks plunging the country into a deeper economic crisis.
Speaking in an interview with Money FM News, Association President Dr. Kafula Mubanga said the unbearable pricing of fuel on the international Market triggers a challenge for multinational Oil Marketing Companies importing more petroleum products in the country.
Dr. Mubanga observed that the key solution to this challenge is to ensure that the local OMCs participate fairly on the importation of fuel against the multinationals.
“It is cheaper to buy the fuel from a refinery company as opposed to spot purchase,” Dr. Mubanga noted.
“The association really needs to see the full participation of the Zambian nationals as opposed to only having oil industries being dominated by the multinationals as it is a challenge.”
Dr. Mubanga stated that the Multinational Oil Marketing Companies have various countries of interest in that they do not supply the commodity to one country.
He urged government to ensure that the 50 percent fuel volume allocation to local transporters is fully implemented so that local Oil Marketing Companies can fully benefit.
“Government must ensure that the National Development Plan 50% supply by local Oil Marketing Companies must be fully implemented so that Local OMCs can benefit fully benefit from it,” he stated.