Government Cuts Fuel Debt By Nearly US$700 Million

The Government has cut the debt linked to fuel imports from more than US$900 million in 2022 to around US$210 million as of July 2026, according to the Ministry of Energy.

Speaking during a tour of the newly completed Lusaka fuel storage depot, Ministry of Energy Permanent Secretary Ephraim Munshifwa said the sharp reduction followed the Government's decision to stop funding fuel imports directly and instead allow private companies to take responsibility for bringing petroleum products into the country.

Prof Munshifwa said the move has eased pressure on public finances, improved the efficiency of fuel supply and encouraged greater competition within the sector.

He explained that, rather than spending large sums of public money on fuel imports, the Government is now concentrating on putting the right infrastructure and policies in place so private businesses can operate more effectively.

"Allowing the private sector to take the lead in fuel procurement has improved efficiency and significantly reduced the financial strain on Government," Prof Munshifwa said.

He added that the reforms are intended to secure a reliable fuel supply while freeing up public funds for key sectors such as healthcare, education and social services.

Meanwhile, the new Lusaka fuel storage depot, built at a cost of US$123.5 million, is now mechanically complete and is awaiting commissioning before it is officially handed over to the Ministry of Energy.

The depot, the largest fuel storage facility in Zambia, can hold up to 60 million litres of diesel, 40 million litres of petrol and two million litres of kerosene.