- Dr Mubanga said multinational oil marketing companies had deliberately not ordering the commodity to push Government to increase the price of the commodity.
By PETER SICHALI
MULTINATIONAL Oil Marketing Companies are arm twisting Government by causing shortage of fuel in their quest to push for price increase, Oil Marketing Companies Association of Zambia (OMCAZ) president Kafula Mubanga has said.
Dr Mubanga said multinational oil marketing companies had deliberately not ordering the commodity to push Government to increase the price of the commodity.
“The shortage the country is currently experiencing is mainly because of the temporal shut down of Indeni Petroleum Refinery but also oil marketing firms have deliberately not ordered the commodity to arm twist Government to increase the price,”Dr Mubanga said.
He said Oil marketing companies were aiming at making maximum profits of prices if fuel prices were increased.
“Oil marketing companies are expected to support Government’s goodwill of Zero rating of VAT on fuel. Local oil marketing firms were not getting a fair share of business because some multinationals were getting business meant for local suppliers through other local oil marketing companies,”Dr Mubanga said.
Dr Mubanga suggested that Government should grow the local petroleum sector by ensuring that local Oil marketing firms were given a fair share of the contracts.
Government, he said, should also reinforce implementation of local empowerment scheme as enshrined in the Seventh National Development Plan.
Dr Mubanga said there were currently no monitoring measures in place to ensure that multinational companies followed the necessary guidelines.