By Jane Chanda
Oil Marketing Companies Association of Zambia (OMCAZ) president Dr. Kafula Mubanga says Dangote Petroleum Refinery is welcome to participate in Zambia’s oil sector, but must comply with local policies for fair competition.
Energy Minister Makozo Chikote on Monday said the government was engaged in crucial talks with Dangote Petroleum Refinery in Nigeria, to explore areas of mutual cooperation between Zambia and Africa’s largest oil refinery company.
Reacting to the meeting yesterday, Dr. Mubanga said Zambia’s engagement with Dangote Petroleum Refinery was a step towards actualising the Open Access Policy in the petroleum sub-sector, encouraging private sector participation, aiming to increase the supply of petroleum products and reduced commodity prices through competition.
He noted that the government’s engagement with Dangote indicated its commitment to diversifying supply routes, reducing costs and ensuring a stable fuel supply, ultimately expected to have a positive impact on Zambia’s energy sector.
“The government should bring on the table a lasting solution and not wanting to always empower Agro Fuels,” Dr. Mubanga said.
Dr Mubanga also highlighted the importance of implementing policies that safeguarded the interests of indigenous local oil marketing companies, in order to ensure that they could compete fairly with international players like Dangote Petroleum Refinery.
During the delegation’s engagement, president of Dangote Industries Limited, Aliko Dangote, highlighted the refinery’s capacity to produce 650,000 barrels per day, making it the largest in Africa.
He stated that this capacity was designed to meet 100 percent of Nigeria’s energy needs and serve the African continent under the African Continental Free Trade Area (AfCFTA) framework.
Chikote stated that exploring partnerships with Dangote Refinery presented an opportunity to diversify supply routes, reduce costs, and ensure a stable fuel supply.
He added that the discussions were part of government’s efforts to increase the supply of petroleum products and reduce commodity prices through competition in the oil sub-sector.
