By Cecilia Chiluba/Zambia/Lusaka
The Ministry of Energy in Zambia says more Oil Marketing Companies (OMCs) are expected to come on board and import fuel following government’s decision to zero-rate Value Added Tax (VAT) and suspend Excise Duty on imported diesel for a period of three months.
The Zambian Government has temporarily suspended Excise Duty and zero-rated VAT on petrol and diesel from April to June 2026 to mitigate the impact of high fuel prices on consumers.
Energy Minister, Makozo Chikote expressed confidence that the intervention will stabilize the petroleum market and ease pressure on domestic fuel prices.
Mr. Chikote said the measure is expected to provide immediate relief to consumers and businesses while cushioning the economy from the effects of rising global oil prices.
“Government anticipates that this intervention will enhance the affordability and accessibility of fuel, sustain operations across key sectors, and prevent supply disruptions,” he added.
He explained that the policy is also aimed at promoting smooth distribution and discouraging speculative practices such as hoarding by OMCs, thereby restoring normalcy in the supply chain following recent challenges.
Mr. Chikote disclosed that Government’s engagements with OMCs are progressing well, with some firms already advancing plans to import additional fuel stocks.
“These efforts are expected to supplement existing reserves and further strengthen supply security in the coming months,” Mr. Chikote noted.
“We should all understand that the temporary suspension of VAT and Excise Duty underscores Government’s proactive approach to protecting citizens and supporting economic resilience amid global uncertainties.”
He attributed the current fuel supply disruptions to external global factors, particularly developments on the international market, and not domestic constraints.
“Despite rising regional fuel prices, Zambia continues to maintain comparatively lower prices, even following the recent adjustments announced by the Energy Regulation Board (ERB) for April, 2026,” Mr. Chikote stressed.
He applauded Zambians for the support and cooperation being rendered to Government during the fuel Emergency period.
Mr. Chikote urged citizens to remain calm, cooperate with authorities, and adhere to guidance issued during this period as the country navigates the declared petroleum supply emergency.
