An Energy Expert has reaffirmed calls for the government to consider expanding the country’s fuel reserve capacity to at least six months to strengthen energy security during global supply chain disruptions.
Bornface Zulu noted that Zambia currently maintains fuel reserves of about 60 days for diesel and approximately 19 days for petrol, which provides short-term protection against global supply disruptions.
Eng. Zulu told Money News in an interview that the ongoing tensions between Iran, Israel and the United States could eventually trigger fuel price increases in Zambia if the conflict persists.
“Expanding reserve capacity, diversifying fuel import sources, and strengthening foreign exchange reserves will help cushion the country from global price shocks,” he said.
He stated that although Zambia is currently shielded from immediate supply shocks, prolonged geopolitical tensions in the Middle East could disrupt global oil markets and indirectly affect local pump prices.
Eng. Zulu explained that higher fuel prices would have a ripple effect on the cost of living for ordinary Zambians.
“Higher pump prices translate into increased transport costs, which often result in higher bus fares and logistics costs. This ultimately pushes up food prices and reduces disposable income for vulnerable households,” Eng. Zulu said.
He added that small and medium enterprises that depend heavily on fuel for transportation and generators could also see their profit margins shrink.
Eng. Zulu also encouraged greater regional cooperation within the Southern African region to develop shared fuel reserves and refinery capacity.
In the long term, Mr. Zulu recommended that Zambia invest in local refining capacity and accelerate the adoption of renewable energy solutions such as solar and biofuels to reduce dependence on imported petroleum products.
“Proactive measures will help shield the country from global geopolitical tensions and protect ordinary citizens from rising fuel costs,” Eng. Zulu added.
According to Reuters, Asian markets were in a wary mood early today as hostilities in the Gulf kept oil prices elevated, clouding an inflation outlook that should keep most central banks on pause at policy meetings this week, and probably leading one to hike.
