Maravi

Lies will not put fuel in the pumps

Lies will not put fuel in the pumps
By Editor
Tue 03 Nov. 2009, 04:00 CAT

THE persistent shortage of fuel which the country has continued to experience needs to be addressed in an honest and serious manner.

We say this because this problem which started a few weeks ago has continued despite the numerous government assurances that trucks are rolling into the country with the commodity.

Much as the so-called trucks are being cleared at the country’s borders, it is undisputable that the shortage of the commodity is being experienced in all parts of our country. In Lusaka, the supply is intermittent and this is exacerbating the shortage because demand is outstripping supply. People are rushing to service stations whenever they hear that fuel is in stock.

Places such as Kasama, Chipata, Livingstone and Mazabuka, among others, do not have adequate stocks of the commodity. What is worse is that this shortage of fuel which started with petrol is now extending to diesel when we were assured by the Ministry of Energy and Water Development that there were enough stocks of diesel at Indeni Petroleum Refinery. This situation should not be allowed to continue.

One would have thought that we learnt from the worst shortage that the country experienced in September 2005. We thought that enough lessons had been learnt as far as the management of the flow and supply of fuel, but it appears we are mistaken. Rupiah Banda and his friends cannot say that this fuel shortage was unforeseen. Indeni Petroleum Refinery indicated that they needed to replace the catalyst for the plant to continue operating but the government did not intervene and allowed them to continue operating until the plant had a technical fault.

What followed was the closure of the plant for routine maintenance and we were assured that there were enough stocks. Numerous statements have been made by energy minister Kenneth Konga and his permanent secretary Peter Mumba and there have been many assurances that Dalbit Petroleum of Kenya and Independent Petroleum Group (IPG) of Kuwait will bring in the commodity.

And the two companies are doing that. We were told that oil marketing companies (OMCs) will also import fuel following the waiver of the 25 per cent import duty. To start with, the statutory instrument for the waiver was only signed last Friday - October 30, 2009 - weeks into the shortage. Some of the OMCs are even hesitant to bring in petroleum products because of the other taxes, which will still make importation expensive for them.

For instance, we are aware that the OMCs could manage to bring in diesel because even with the seven per cent excise duty, which they have to pay, they can still manage to sell it at the current price. But we are aware that the OMCs have concerns on importation of petrol because even with the waiver, the excise duty and road levy still remains at 36 per cent and this might make it impossible for them to sell the commodity at the current price. In the midst of this fuel crisis, the Energy Regulation Board (ERB) announced an increase in fuel prices and reversed their decision barely hours after the announcement.

This is total confusion, which cannot be allowed to continue in a critical sector such as energy. The assurances and the statements that are being made by government officials, paid activists and other mercenaries on the fuel situation are just confusing the people because the situation on the ground is totally different. Actually Rupiah and his friends would do well to acknowledge that they have created a mess in this critical sector and work towards cleaning it up. The first step in solving any problem is to acknowledge its existence.

When a problem is openly admitted, it is easy to go about it in an open manner. Of course, admitting a problem opens those responsible to attacks from their political opponents. But when mistakes are admitted, political opponents can only use them in a very limited manner because the problems will be solved.

Honesty and truthfulness are very important in situations like these. People do not want to listen to empty heads that are given expensive airtime and newspaper space to try and hoodwink them with clear lies on the fuel situation.

We are in the rainy season and people are preparing their fields, if not already planting. They need fuel to till the land, in the case of commercial farmers; others need to move farming inputs from one point to another. There are several farming activities that risk being grounded to a halt because of the current fuel shortage if it is not addressed urgently. If Rupiah and his friends cannot provide fuel to the farmers, how else do they expect to have a food secure 2010? How do they expect to prevent the hunger problem and subsequently lower poverty levels? How do Rupiah and his friends expect the country’s sectors such as mines and tourism to operate effectively if people spend their time looking for fuel? We also know that this shortage of fuel if not properly handled can lead to an increase in prices of goods and services, including food, and ultimately affect the country’s inflation rates.

There is need for honesty and seriousness on the part of those in government when it comes to issues like these. You cannot run a country on the basis of firefighting when you have the option of taking a preventive approach. You cannot deliver to the people if you put your interests and those of your pocket and those of your sons and friends first. You cannot deliver if you are just preoccupied with serving yourself, looking for money-making ventures and opportunities for kickbacks instead of serving the people.

This situation could have been avoided with more honesty, integrity and proper planning. Essentially, the oil marketing companies (OMCs) are supposed to have petroleum stocks to last up to 15 days but right now we are not aware as to how much stock these companies have because there has never been a serious audit by the government. We are also aware of the Strategic Reserve Fund (SRF) whose purpose is to help administer fuel reserves but one cannot help but wonder what is happening or has happenned to this fund. Even as Indeni resumes operations any time from now, we are not sure if all the necessary work has been done to prevent another breakdown.

The country needs a long-term solution to the fuel shortage. Contracting Dalbit and IPG is not a solution to the current mess. We have had enough shortages of fuel in this country and by now we should have a formula of what works or does not work for us. Giving contracts to friends to supply fuel does not work.

It appears Rupiah and his friends are content with running this important sector without a strategic plan because this helps them manipulate things to their own personal benefit any time. The constant breakdowns at Indeni need to be looked at in a different way if the plan we have been using is not working. If the government wants to increase uptake at Indeni, they should ensure a complete overhaul of the obsolete equipment for it to operate efficiently.

We do realise the fact that the plant needs regular service and maintenance but it is not prudent to fix a problem in one area today when you know that there are chances of having another problem in a different area. We also need to look at all the other strategies that have been put in place in the energy sector as far as the supply of petroleum products is concerned. We are not saying the country cannot have problems. Problems will always be there no matter how perfect we want things to turn out.

What the country needs is a well thought-out energy plan so that minor hiccups in the supply chain do not send panic among the people. We do not need to remind Rupiah and his friends on the importance of a steady energy supply system to economic growth.

Labels: INDENI, OMCs, RONNIE SHIKAPWASHA

posted by MrK @ 6:08 PM