Energy Minister Hon. Makozo Chikote has addressed concerns raised over alleged monopolistic practices regarding the use of the TAZAMA Pipeline storage facilities. The issue was brought to Parliament by Bweengwa Member of Parliament, Mr. Kasautu Saiti Michelo, following reports that Agro Fuel Investments Limited had reserved tank space, potentially blocking other stakeholders from accessing cheaper fuel.
The issue was highlighted in a News Diggers article titled “Open Access Hits a Snag as Agro Fuel Fills TAZAMA Reserve Tanks, Hinders Offloading of a Cheaper Diesel,” prompting Mr. Michelo to question the fairness and transparency of the storage allocation process. In response, Minister Chikote delivered a comprehensive ministerial statement outlining the government’s stance on the matter and reaffirming its commitment to reforms in the petroleum sector.
In his statement, Hon. Chikote emphasized that the government had implemented significant reforms to ensure competition and transparency in the fuel supply system. He refuted claims of unfair storage allocation and reassured the public that the Open Access Framework, set to be fully implemented in April 2025, would guarantee equitable participation for all qualified oil marketing companies (OMCs).
“TAZAMA is fully prepared to receive the first vessel under the Open Access Framework in April 2025,” Minister Chikote assured Parliament, stressing that measures have been put in place to ensure the required storage space for all participating companies. He further clarified that Agro Fuel Investments Limited’s involvement in the storage of diesel in the pipeline was part of a transparent, competitive process initiated by the government.
Hon. Chikote provided a detailed overview of the key reforms implemented by the New Dawn Government, including the conversion of the TAZAMA Pipeline to transport diesel, the introduction of the Open Access Framework, and the competitive process for pipeline access. He highlighted that the conversion of the pipeline, completed in March 2023, had been a significant milestone, allowing for increased competition and reduced transportation costs, ultimately benefiting consumers.
The minister also addressed the concerns over the alleged monopolistic practices, emphasizing that the government’s priority is to foster a competitive environment that ensures affordable fuel prices and greater participation from Zambian entrepreneurs in the petroleum sector.
“The Open Access Framework has brought in competition that has compelled oil marketing companies to cut their profits, as demonstrated in the recent tenders,” Hon. Chikote explained. He also noted that the framework’s implementation would promote fairness, accountability, and transparency in the fuel supply system.
In conclusion, the minister reassured the nation that the government remains committed to ensuring a reliable and secure fuel supply, while also fostering a more inclusive and competitive petroleum sector. He reiterated that the reforms were aimed at delivering lasting change for the benefit of all Zambians, ensuring that the economy works for everyone, not just a few well-connected individuals.
With the Open Access Framework set to be fully operational by April 2025, the government’s vision for a more transparent and competitive fuel supply system is on track to become a reality.