The statement issued by Dr Fred M’membe, the President of the Socialist Party of Zambia, has raised concerns about the forthcoming Indeni cheap diesel. In the statement, Dr M’membe highlighted several questions about the government’s plans and the impact it would have on the citizens of Zambia.
“Every effort to bring down the prices of fuel deserves support, but we need to ensure that the national uniform pump price is maintained and all stakeholders are consulted to avoid any potential price differentials,” Dr M’membe said.
He also expressed concerns about whether Indeni production would meet the total country demand and become a single reference price point. “We need clarity on whether Indeni’s currently installed processing capacity will meet the total country demand,” he said.
Dr M’membe also questioned the impact on the public sector oil marketing companies (OMCs), whose price reference point is a spot price, which is likely to be higher than Indeni’s price. “How will these two different prices be reconciled to arrive at a national uniform pump price, which is currently in place?” he asked.
He also highlighted the issue of price differentials between diesel and other products such as petrol, kerosene, and heavy fuel oil, as these would have to be imported on spot prices. “What are the consequences of this? Will products imported by OMCs be priced differently, or has the government abandoned the policy of allowing OMCs to import fuel and only play an oversight role via the Energy Regulation Board (ERB)?” he said.
Dr M’membe emphasized the need for clarity on the matter so that citizens are aware of the impact. “We need to ensure that citizens are aware of the impact, and we need transparency and clarity on the issue of Indeni cheap diesel,” he said.
In his statement, Dr M’membe also revealed that a group of production workers at Indeni had been given two-month contracts to process the commingled feedstock, which was stuck in the pipeline. This suggests that the current processing is a temporary measure, and finished products will be imported.
While the efforts to bring down fuel prices are commendable, there is a need for more transparency and clarity on the issue of Indeni cheap diesel. It is essential to ensure that the national uniform pump price is maintained, and all stakeholders are consulted to avoid any potential price differentials.
