No Threat to Fuel Stocks

Government assures the nation of stable petroleum supply amid global tensions, indicating that Diesel, petrol, kerosene, and Jet A-1 remain above minimum thresholds

By Francis Maingaila ♥️

Lusaka, Zambia24 --- (05/03/26) - Zambia’s fuel supply remains secure despite escalating geopolitical tensions in the Middle East, with the Government assuring the nation that current petroleum stocks are sufficient to cushion the country against immediate supply disruptions.

Speaking during a press briefing on March 5, 2026, Energy Minister Makozo Chikote said the petroleum sub-sector has stabilized after experiencing logistical challenges in the supply chain in recent months.

He said concerted efforts by Government and key industry players have strengthened supply reliability and ensured adequate fuel availability across the country.

Mr. Chikote said the sector is now stable, well-regulated and adequately supplied, noting that recent measures taken by Government have improved procurement transparency and enhanced competition in the petroleum market through the open access framework.

He further noted that Zambia recently recorded a downward adjustment in pump prices, largely supported by the appreciation of the Kwacha against the United States dollar and relatively stable international oil prices at the time fuel stocks were procured.

However, the minister warned that ongoing geopolitical developments in the Gulf region could affect the global petroleum supply chain if tensions escalate further.

Mr. Chikote said the recent escalation of conflict in the region poses risks to the Strait of Hormuz, a key maritime corridor through which about 20 percent of the world’s crude oil passes.

He explained that any prolonged disruption or closure of the strategic route would threaten global oil supply stability, potentially increasing crude oil prices, freight charges and insurance costs.

“While Zambia is geographically distant from these geopolitical developments, we are integrated into the global petroleum supply chain,” Mr. Chikote said.

“An escalation could therefore affect international crude prices, refined product prices, freight and insurance costs, and ultimately the landed cost of petroleum products into our country.”

He cautioned that sustained geopolitical tensions in the Gulf region could lead to upward adjustments in domestic pump prices in the medium to long term.

The minister said the Ministry of Energy is closely monitoring developments in the global oil market in collaboration with the Energy Regulation Board, TAZAMA Pipelines Limited and oil marketing companies to ensure continued fuel supply.

Mr. Chikote said global tensions have already triggered several short-term effects, including spikes in crude oil prices due to supply uncertainty, increased freight and insurance premiums, and rising transportation and logistics costs.

Despite these developments, he assured the nation that there would be no immediate impact on local fuel prices within the next month because current stocks were procured at earlier and relatively lower international prices.

He explained that under Zambia’s import parity pricing model, prolonged global disruptions could eventually raise the landed cost of fuel, particularly if shipments are forced to reroute around the Cape of Good Hope, which would increase freight charges.

Mr. Chikote said Government remains alert to such risks and has put in place mechanisms to mitigate potential shocks to the fuel supply system.

He disclosed that as of March 5, 2026, Zambia’s fuel stock levels remain adequate. Diesel stocks stand at approximately 326 million litres, representing about 60 days of national cover, while petrol stocks are estimated at 32.8 million litres, equivalent to about 19 days of cover.

The country also holds approximately 10.4 million litres of kerosene, representing about 14 days of cover, and about 1.6 million litres of Jet A-1 fuel, which translates to roughly nine days of cover.

Mr. Chikote emphasized that diesel and petrol stocks are above minimum threshold levels and provide reasonable protection against short-term shocks in global supply.

He said Zambia’s strategic fuel reserve framework, supported by statutory levies, is designed to cushion temporary supply disruptions rather than permanently shield the country from global price movements.

The minister therefore urged the public not to engage in panic buying or hoarding of fuel, particularly diesel and petrol.

He added that Government has also diversified supply routes through regional corridors, including the Walvis Bay route, to strengthen the resilience of the petroleum supply chain.

Mr. Chikote said authorities will continue engaging oil marketing companies to ensure adequate operational stocks remain available on the market.

He reaffirmed Government’s commitment to maintaining uninterrupted fuel supply across the country, stressing that any future pump price adjustments would be determined strictly by prevailing global market fundamentals.