DIAGNOSTIC ASSESSMENT OF THE PETROLEUM SUB-SECTOR IN ZAMBIA - RESEARCH REPORT

In the context of the ongoing petroleum sector reforms, the Policy Monitoring and Research Centre (PMRC) with the support of the Ministry of Energy, commissioned a rapid diagnostic assessment study of the petroleum sector in Zambia to understand the current challenges and reform options. [...] While the immediate aim for the pipeline was to mitigate the fuel crisis and normalise the supply of finished petroleum products to the mining and industrial sectors, Government’s longer term goal was to use the pipeline for the supply of crude oil to a refinery (to be constructed in 1971) next to the TAZAMA Bwana Mukubwa terminal. [...] In particular, the 8NDP lists the removal of inefficiencies in the fuel supply chain, such as, standardizing fuel supply prices and supplying of diesel through the pipelines as some of the reforms needed to improve the efficiency of the energy sector (MoFNP, 2022). [...] The Petroleum Act, which governs the operations of the downstream segment of the petroleum sub- sector was enacted in 1930 and last amended in 1995 and misses important features of the petroleum sub-sector. [...] 3.2 Findings in the Downstream segment The petroleum sub-sector transition has presented some opportunities in the downstream segment of the sector, in particular, the increased responsibility for the OMCs to meet the national demand for petroleum products has presented opportunities for growth for local OMCs and fuel transporters.