Fuel Game Changer
New Lusaka depot expands reserves as Government cuts petroleum debt burden
By Francis Maingaila ♥️
Lusaka, Zambia24, -- July 23, 2026 — Zambia has completed construction of its largest-ever fuel storage facility, a 102,000-cubic-metre depot in Lusaka, in a major step aimed at strengthening national energy security and protecting the country from global petroleum supply disruptions.
Permanent Secretary in the Ministry of Energy Prof. Ephraim Munshifwa announced the development during a guided media tour of the newly constructed facility, describing it as one of Government’s flagship investments in petroleum infrastructure.
The depot, which represents a major expansion of Zambia’s strategic fuel reserves, has the capacity to store 60,000 cubic metres of diesel, 40,000 cubic metres of petrol and 2,000 cubic metres of kerosene.
Prof. Munshifwa said the facility would provide Zambia with a stronger buffer against international fuel supply shocks while supporting the country’s growing economy through a more reliable petroleum supply system.
"The facility you have toured today is one of Government's flagship investments in petroleum infrastructure," he told journalists.
He added that the project demonstrates Government’s commitment to establishing a modern, reliable and resilient petroleum system capable of improving energy security.
"It reflects Government's commitment to building a modern, reliable and resilient petroleum supply system capable of supporting Zambia's growing economy while strengthening national energy security," Prof. Munshifwa said.
Prof. Munshifwa attributed the reduction to reforms in the petroleum procurement system, particularly the transition from Government-led fuel importation to a private sector-driven model.
"Today, petroleum procurement is 100 percent private sector-led, resulting in greater efficiency, improved competition and significantly reduced Government fiscal exposure," he said.
He explained that the reforms had helped improve efficiency in the petroleum sector while reducing pressure on public finances.
The Permanent Secretary also highlighted the transformation of the TAZAMA Pipeline, which has been repurposed since March 2023 to transport finished petroleum products instead of commingled feedstock.
He said the introduction of the TAZAMA Open Access Framework in April 2025 had increased participation in the sector, with the number of prequalified Oil Marketing Companies rising from 18 to 32.
"Zambia continues to distinguish itself as one of the most competitive players in regional petroleum management," Prof. Munshifwa said.
He noted that despite fluctuations in global oil markets, fuel prices in Zambia remain among the most competitive in the region.
Prof. Munshifwa disclosed that the Lusaka depot had reached the contract close-out stage and was awaiting final financial reconciliation and hot commissioning before becoming fully operational.
Once commissioned, the facility is expected to significantly increase Zambia’s strategic fuel reserves and improve the country’s preparedness during periods of supply disruptions.
The new depot joins the Chipata Fuel Depot, a 7,080-cubic-metre facility that became operational in August 2022, as part of Government’s wider plan to decentralise fuel storage infrastructure across the country.
Prof. Munshifwa further announced Government’s Pilot Bioethanol Blending Programme, describing it as a key foundation in Zambia’s transition towards renewable transport fuels.
He said the initiative would complement efforts to improve energy security while promoting cleaner sources of energy in the transport sector.
The Permanent Secretary thanked journalists for attending the media tour, saying their role remained critical in ensuring citizens are informed about major national development projects.
"Your presence here today demonstrates the important partnership that exists between Government and the media in keeping the Zambian people informed about national development programmes," he said.
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