Sustain fuel waivers in July review - OMCAZ

By BARNABAS ZULU

THE Oil Marketing Companies Association of Zambia (OMCAZ) has appealed to the government to maintain existing fuel-related fiscal waivers and tax relief measures during the July month-end fuel price review to ensure consumers benefit from favourable market conditions.

Speaking on behalf of local oil marketing companies, OMCAZ president, Dr. Kafula Mubanga, said recent developments in both the international and domestic markets have created an opportunity for lower fuel prices.

Dr. Mubanga noted that international crude oil and refined petroleum prices have been on a steady decline, while the Zambian Kwacha has continued to strengthen and stabilize at around K18.50 against the United States dollar.

He said these positive market fundamentals provide a strong basis for a reduction in fuel prices but warned that consumers may not fully benefit if Government withdraws the existing waivers and tax relief measures.

"Removing these buffers now would completely wipe out the hard-earned gains of a stronger Kwacha and lower international prices," Dr. Mubanga said.

He urged Government, through the Ministry of Energy and the Energy Regulation Board, to sustain the waivers so that savings can be passed on to businesses, public transport operators and households.

Meanwhile, OMCAZ has also called for indigenous oil marketing companies to be prioritised in the allocation of capacity on the TAZAMA Pipeline following its transition to an open-access system for finished Low Sulphur Gas Oil.

Dr. Mubanga expressed concern that foreign-owned entities are increasingly dominating pipeline allocations, a trend he described as harmful to Zambia's economy.

He argued that prioritising local oil marketing companies would help retain profits within the country, strengthen liquidity in the financial system and create employment opportunities for Zambians in logistics, fuel distribution and related sectors.

"We expect the strategic documents and frameworks governing our energy sector to actively protect, empower and build local capacity," he said.

Dr. Mubanga said OMCAZ remains ready to work with the Ministry of Energy to ensure that fuel pricing and pipeline utilisation policies promote economic growth and deliver tangible benefits to Zambians.

Ends.