Maravi

Saki urges govt to find alternative source of oil

Saki urges govt to find alternative source of oil
By Chiwoyu Sinyangwe
Wednesday August 13, 2008 [04:00]

GOVERNMENT needs to be responsive to the petroleum crisis in the country and provide enough motivation for OMCs to import finished petroleum products, energy expert Andrew Kamanga observed yesterday. And United Liberal Party (ULP) president Sakwiba Sikota called on the government to look beyond the Middle East region as the country' s alternative source of crude fuel.

Commenting on the recent countrywide diesel crisis, Kamanga said there was need for transparency in the management of the fuel situation in the country to ensure adequate planning by all stakeholders.

"The current fuel crisis in the country is a basic issue. If Indeni Oil Refinery is going to shut, then oil marketing companies (OMCs) need to be informed in good time so that they make adequate preparations to bring in finished products from outside the country," Kamanga said. "But most critically, government needs to come up with definitive policy to deal with shortages like the current one.

"If Indeni shuts, then OMCs should be given enough motivations like waiving duty and other applicable taxes on imported finished petroleum products so that OMCs have enough motivation to import the oil."
He also said there was need for accurate information on the current economic consumption in the country considering the increased economic activities especially in the mining sector.

Analysts estimate that the previous national consumption of 90, 000 metric tonnes per 45 days had since reduced to 30 owing to increased demand.

And Sikota observed that the poor in the country would be hit the hardest by the current escalating costs of fuel.

In a press statement released yesterday, Sikota also urged the government to expedite the installation of the hydrocracker at Indeni to enable the country's sole oil refinery to refine feedstock coming from Angola.

"Instead of asking poor people to accept the high cost of living, government should look for other sources of fuel that will make life cheaper for the common man. We expect a better response from the MMD government concerning the high cost of diesel; and petrol in Zambia," stated Sikota. "Government should invest in equipment that will enable us to start importing crude oil from Angola and other African countries. Angola is much closer to Zambia than the countries from which we import oil in the Middle East. Importing crude from Angola will greatly cut the cost of diesel and petrol in Zambia."

Sikota also urged the government to seriously pursue the biofuel sector as an alternative source for the country's fuel supply.

"Government should also consider the possibilities of producing ethanol as an alternative source of fuel for the Zambian economy. Ethanol is a renewable fuel source that can be produced from a wide range of feedstock including grains such as sorghum, agriculture waste and cellulose. All these grains can be cultivated at a large scale in the country," stated Sikota.

Labels: BIOFUELS, FUEL, SAKWIBA SIKOTA

posted by MrK @ 6:35 AM