Clarification on Petroleum Supply Chain Functions

The Energy Regulation Board (ERB) would like to reiterate that its role in the petroleum supply chain is restricted to determining the price at which petroleum products should be sold in order to meet costs of all the players and ensure adequate funds for procurement of subsequent stocks.

This function is stipulated and provided for under the Energy Regulation Act No. 12, 2019. It should, however, be noted that in order to provide for sustained management and operation of this important and critical sector, different players provide specific functions in the petroleum supply chain.  The petroleum supply structure in Zambia,  therefore,  comprises  Government, the ERB, TAZAMA Pipelines Limited (TAZAMA), Indeni Petroleum Refinery Company Limited (INDENI), Ndola Fuel Terminal, Oil Marketing Companies (OMCs), Dealers and Transporters.

The players in the supply chain have specific functions which include: procurement of feedstocks and finished petroleum products conducted by Government; pricing of petroleum products by the ERB; Pumping, Storage and Selling of the refined products by TAZAMA; Distribution of petroleum products throughout the country by OMCs and delivery of petroleum products to consumers by Transporters.

We hereby wish to reiterate that the ERB function is restricted to pricing of petroleum products in the country as is provided for under the Energy Regulation Act No. 12 of 2019. The Board’s mandate does not include procurement of petroleum products contrary to what has been portrayed on some social media platforms. 

We further wish to advise that the ERB has an open door policy and interested parties are encouraged to directly engage the regulator on the Toll Free Line 8484 or visit any of our offices in Lusaka, Kitwe, Livingstone and Chinsali.