• This is due to the implementation of TAZAMA Pipeline to move diesel.
• The accrued benefits arising from TAZAMA pipeline should be translated into reduced pump prices on the domestic market.
• OMCZ expect to receive a reasonable reduction in the pump price.

Oil Marketing Companies Association of Zambia (OMCAZ) says it expects the cost of diesel to reduce by between K2 and K4 as Energy Regulation Board (ERB) announces April fuel prices on 31st March, 2023.
Speaking in an interview with Money FM News, Association President Dr. Kafula Mubanga attributed the anticipated reduction to the implementation of TAZAMA Pipeline to move diesel, resulting in reduced transportation costs.
Dr. Mubanga stated that although the Kwacha has not been performing very well lately, the accrued benefits arising from the TAZAMA pipeline should be translated into reduced pump prices on the domestic market.
“The fact that government has implemented the TAZAMA Pipeline to move finished products particularly diesel, we do expect that there should be a drop of at least between K2 to K4 because the cost of transportation has come down and also the accrued benefits that are arising from the pipeline should be translated into reduced pump prices.”
“Not foregoing the fact that the Kwacha has not performed very well on the international market, of course given that scenario we expect that there should be still some benefits should be passed on to the market arising from the TAZAMA Pipeline implementation,” Dr. Kafula stated.
He added that the Association expects government to give a reduction particularly to diesel that has been transported through the TAZAMA Pipeline.
“So we expect that government should give a reduction particularly to diesel that has been ferried through the TAZAMA Pipeline but the benefits might not come at once because people have to gravitate from using various modes of transporting the fuel in the country so there is that conversion process even within the sector.
“That might take time as we have over 80 percent moving through the pipeline and the benefits will get to its maximum point, so we expect to receive a reasonable reduction in the pump price,” he added.
Meanwhile, Finance Minister Dr. Situmbeko Musokotwane said the cost of fuel is determined by oil prices on the international market, performance of the exchange rate as well as transportation costs, hence April pump prices will depend on the interaction of these three factors.
Recently, Energy Regulation Board (ERB) adjusted upwards the pump price of fuel for March 2023, with petrol increasing by K1.30 per litre, while the pump price of diesel and kerosene remained unchanged at K29.25 and K22.29 respectively.