OMCs relevance probe completed
Published On July 17, 2014 » 4528 Views» By Administrator Times » Business, Stories
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THE consultant engaged to evaluate the existence of middlemen in the
oil procurement process, has concluded the work and submitted findings
to the Government, Energy Permanent Secretary Charity Mwansa has said.
Ms Mwansa said in an interview that the Government would assess the
recommendations of the expert and make a decision following public
concerns that there were ‘irrelevant middlemen’ in the fuel
procurement process.
She said the ultimate goal was to reduce the cost of petroleum
to levels within the reach of ordinary Zambian consumers.
The local fuel procurement chain involves about 13 middlemen and
stakeholders had called for the elimination of those deemed irrelevant
as they were charging exorbitant transportation fees.
According to local energy experts, the long procurement chain and high
fees being levied by some of the middlemen have contributed to high
fuel pump prices, thereby making it expensive to do business in
Some of the middlemen in the oil procurement chain include Swiss-owned
Glencore Xstrata, which supplies crude oil, Kenya’s Dalbit Petroleum
and PTA Bank who are the financiers of crude oil feedstock cargo.

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