Zambian consumption of petroleum products up by 30%

LUSAKA, June 24 (Xinhua) -- The increased use of diesel-powered generators to beat ZESCO load-shedding and heavy investment in the mines has increased Zambia's consumption of petroleum products by 30 percent, according to Times of Zambia on Tuesday.

Energy and Water Development Permanent Secretary Peter Mumba said in an interview in Lusaka that the increased use of diesel-powered generators and mining activities had increased fuel consumption.

He said the daily consumption had increased from 1 million liters to 1.6 million liters for diesel while that of petrol rose from 750,000 liters to 1 million.

Mumba said the other factor that pushed up Zambia's consumption of petroleum products was the sharp increase in the number of motor vehicles being imported into the country. As many as 300 new vehicles were entering Zambia in a single day from either Japan or South Africa.

Researches also revealed that there were close to 500 generators that used diesel to run in the country, and with such a number, it was anticipated the consumption pattern should change, added the permanent secretary.

"That is why the demand for the petroleum products has gone up by 30 percent. The consumptions of both diesel and petrol in a day have risen," Mumba said.

The official said he hoped the negotiations which started Monday between Zambia National Commercial Bank (ZNCB) and the government on the long-term oil procurement would be concluded within this week.

Last week, the government selected the ZNCB for financing arrangement of the long-term procurement of oil. This was after talks between the government and Stanbic Bank Zambia Limited collapsed in March.

Stanbic Bank Zambia Limited was earlier selected by the government to finance the procurement of close to 1.5 million tons of crude feedstock over a period of two years.