By AARON CHIYANZOSINGLE sourcing of multinational oil marketing companies for fuel procurement contracts by the State risks plunging the country into a deeper economic crisis because stable supply is not guaranteed, the Oil Marketing Companies Association of Zambia (OMCAZ) has warned.OMCAZ president Kafula Mubanga said Government should secure 50 percent of oil procurement contracts for local oil marketing companies to ensure stable supply of fuel in the country without unnecessary disruptions.This follows the ongoing shortage of diesel in Lusaka and other towns owing to the disruption of supply as some oil marketing companies have stopped importing oil.Importation costs have become unbearable because of the increase in international prices of oil when the pump price in Zambia has remained the same.Dr Mubanga explained that local oil marketing companies procure the oil for supply on the Zambian market using their own resources while multinational companies were single sourced for government contracts.He said with a government contract, multinational […]
‘STATE’S FUEL SINGLE SOURCING A HIGH RISK’
