Fuel debt reduced to US$210m from US$900m

By MUBITA KATETE 

GOVERNMENT has reduced the debt it accumulated from importing petroleum products from over US$900 million in 2022 to about US$210 million as of July 2026, the Ministry of Energy has disclosed.

Speaking after touring the newly completed Lusaka fuel storage depot, Ministry of Energy Permanent Secretary Ephraim Munshifwa said the reduction was achieved after government stopped directly financing fuel procurement and allowed private companies to take over the importation of petroleum products.

Professor Munshifwa said the change has helped reduce pressure on government finances, improve efficiency in the fuel supply chain and create more competition among fuel suppliers.

He explained that instead of spending large amounts of public funds on importing fuel, Government is now focusing on providing infrastructure and policies that allow the private sector to operate effectively.

“The decision to allow the private sector to lead petroleum procurement has helped improve efficiency and reduced the financial burden on Government,” Prof Munshifwa said.

He said the reforms are aimed at ensuring a stable fuel supply while allowing Government to channel more resources towards other important areas such as health, education and social programmes.

Meanwhile, the new fuel depot, constructed at a cost of US$123.5 million, is now 100 percent mechanically complete and awaiting commissioning and handover to the Ministry of Energy.

The facility, which is the country’s largest fuel storage depot, has capacity to store 60 million litres of diesel, 40 million litres of petrol and two million litres of kerosene.

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