• Lack of oil storage facilities deny Zambia the chance to benefit from drop in oil prices.
• Having a lot of oil depots dotted across the country can reduce fuel shortages.
• Government praised for so far constructing 4 oil storage facilities across the country.
An Energy Expert says the lack of adequate oil storage facilities has denied the country an opportunity to benefit from the fall of oil prices on the international market.
In an interview with Money FM News, Yotam Mtayachalo said that if the country had a lot of petroleum depots built across the country, it would be able to buy cheap fuel stocks that could last for many months.
‘‘Having adequate storage facilities can allow the country bring in enough stocks which will allow it to have strategic oil reserves that can even last for three months,’’ he said.
Mr. Mtayachalo said this would help curb the erratic fuel shortages that the country experiences every time there is a break down in the oil supply chain.
He however commended government for so far constructing four petroleum depots in Lusaka, Solwezi, Mansa and Mongu districts.
‘‘We should give government the necessary support as it is on the right path and very soon, Zambia will have enough storage facilities which will address the challenges of fuel shortages,’’ Mr. Mtayachalo said.
According to Absa Bank’s Zambia Market Update, oil prices slipped for a second straight session on Monday as renewed Covid-19 lockdowns raised fresh concerns about global fuel demand.
Brent crude futures for March fell 8 cents to $55.38 a barrel, while US West Texas Intermediate crude for March was at $52.26 a barrel, down by 1 cent.