MWANZA CALLS FOR COMPLETE SUPPLY-CHAIN STRATEGY TO LOWER FUEL PRICES
MWANZA CALLS FOR COMPLETE SUPPLY-CHAIN STRATEGY TO LOWER FUEL PRICES
Democratic Progressive Party (DPP) President Antonio Mourinho Mwanza has called for a comprehensive strategy to reduce the cost of fuel in Zambia, arguing that focusing on a single intervention such as subsidies, refinery operations, taxes or alternative supply routes will not deliver sustainable price reductions.
Mr Mwanza said fuel prices were determined by the full landed cost of petroleum products, including international prices, exchange-rate movements, procurement, financing, transportation, storage, taxes, levies, losses and margins across the supply chain.
“There is no magical formula for cheaper fuel,” Mr Mwanza said.
He said the country needed to examine the entire petroleum supply chain and base decisions on professional economic assessments rather than political considerations.
On INDENI, Mr Mwanza said Government should be factual about the former refinery’s condition and distinguish private-sector assessments from independent feasibility studies.
He said Parliament was informed in February 2026 that a private-sector assessment had found the refinery outdated and requiring substantial investment, while recapitalisation had been considered commercially unattractive.
“That should not be presented as an independent Government feasibility study proving that rehabilitation is impossible,” he said.
Mr Mwanza also noted that Government had previously stated that INDENI Energy had transitioned into an oil marketing company dealing in imported finished petroleum products, with approximately US$250 million required for full operations.
He said the strategic value of INDENI’s remaining assets and functions should therefore be determined using credible economic data.
“We should neither romanticise the old refinery nor dismiss the strategic value of INDENI’s remaining assets,” Mr Mwanza said.
Regarding the Zambia Petroleum Energy Company (ZPEC), Mr Mwanza said the refinery’s ability to contribute to lower fuel prices should be assessed according to its economic performance rather than its mere existence.
He said ZPEC’s designed capacity of three million tonnes of crude annually would only benefit consumers if the facility could secure competitively priced crude, operate efficiently and maintain high utilisation.
“A refinery does not automatically mean cheaper fuel,” he said.
On Angola and the Lobito Corridor, Mr Mwanza said Zambia should compare alternative sources and transportation routes based on their total landed costs rather than assuming Angolan petroleum would automatically be cheaper.
“The correct question is: which source and route can deliver fuel to Zambia at the lowest reliable fully landed cost?” he said.
He further called for diversification of supply routes to reduce vulnerability to disruptions along any single petroleum corridor.
“Competition should be the norm; emergency intervention should be temporary and justified,” Mr Mwanza said.
He said subsidies and tax relief could provide temporary protection during exceptional international price shocks but should not become permanent solutions.
“We should not subsidise inefficiency; we should remove inefficiency,” he said.
Mr Mwanza also called for an audit of every component of the pump price, saying consumers should understand how costs and margins were determined.
“Where an avoidable loss exists, eliminate it,” he said.
He said Zambia should also invest in public transport, rail freight, electric mobility where economically viable, renewable energy, LPG and energy efficiency to reduce structural dependence on petroleum imports.