Zambia energy regulator warns oil companies, retailers against hoarding fuel-Xinhua

Zambia energy regulator warns oil companies, retailers against hoarding fuel

Source: Xinhua| 2023-06-03 19:09:45|Editor: huaxia

LUSAKA, June 2 (Xinhua) -- Zambia's energy regulator on Friday warned oil marketing companies (OMCs) and petroleum retail traders against deliberately holding back sales of petroleum products with a view to cause an artificial shortage.

The Energy Regulation Board (ERB) said it has unearthed a scam where OMCs and petroleum retail traders were deliberately holding petroleum products especially towards the end of the month leading to monthly pricing reviews.

Namukolo Kasumpa, the ERB public relations manager, said the act was tantamount to hoarding and was an offense.

She said hoarding of petroleum products creates an artificial impression of fuel stocks shortages across the country, triggering unnecessary anxiety in the market and putting undue pressure on the petroleum supply chain.

"Accordingly, OMCs and petroleum retail dealers are hereby warned against engaging in behaviour which amounts to hoarding petroleum products. In that regard, the ERB hereby reiterates that any license found in breach of license conditions will be subjected to the enforcement action which includes fines, suspension of revocation of their respective license," she said in a statement.

She has since urged the public to report instances of suspected petroleum products hoarding to the regulator.

The ERB conducts monthly reviews of petroleum product prices.