Energy Reform Pays




Ministry sees success after OMC dispute resolution

By Francis Maingaila ♥️

Lusaka, 27 May 2025 – The Ministry of Energy has reported significant progress in Zambia’s petroleum sub-sector, crediting recent reforms under the TAZAMA Pipeline Open Access Framework for improved fuel pricing and industry stability.

According to a statement issued by Mr. Bob Sianjalika, Principal Public Relations Officer at the Ministry, these developments were outlined by Permanent Secretary for Technical Services, Mr. Peter Mumba, when he appeared before the Parliamentary Committee on Budget and Planning, chaired by Hon. Fred Chaatila, MP for Moomba Constituency.


Mr. Mumba said that although implementation of the Open Access Framework was initially delayed due to government debts owed to Oil Marketing Companies (OMCs), the Ministry has since resolved the matter.

This resolution, he noted, averted potential legal action and enabled the Ministry to fully activate the framework—leading to a drop in diesel premiums from USD 83 to USD 54 per metric tonne and easing pump prices.

He added that new regulatory guidelines have been introduced to foster fairness, transparency, and competition among OMCs. So far, the Ministry has received no formal complaints, a sign of industry compliance and support.

On electricity, Mr. Mumba said load shedding is easing slightly as water levels improve at Kariba and Kafue Gorge hydropower stations.

However, Mr. Mumba explained the generation remains below capacity due to overall low reservoir levels. To prioritise domestic supply, Zambia has reduced power exports from over 500 megawatts to just over 100 megawatts. Imports are being maintained to help meet national demand.

Investor interest in Zambia’s energy sector—particularly in renewable and alternative energy—continues to grow, according to Mr. Mumba. He said the Ministry is working to turn this interest into concrete projects to diversify and secure the national energy mix.

On rural electrification, he expressed concern over poor workmanship by some local contractors engaged by the Rural Electrification Authority (REA), while also commending REA’s efforts to extend power to underserved communities.

He reaffirmed the Ministry’s commitment to empowering local contractors, stressing the importance of quality control.

“The Ministry remains resolute in building a robust, transparent, and inclusive energy sector that drives national development and uplifts the quality of life for all Zambians,” Mr. Sianjalika stated.

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