The shortage of Kerosene popularly called paraffin at local filling stations in Zambia has been attributed to the closure of Indeni which was the main supplier of the commodity. Paraffin is mainly used as a lighting agent by a huge population of Zambians who live in high density areas called compounds.
Following some complaints from consumers, a random spot check by the Zambian Business Times – ZBT revealed that indeed, paraffin is not being stocked at most filling stations despite having storage facilities and pumps installed as part of the regulatory requirement.
When contacted to confirm the reasons behind the shortage, Energy Regulation Board (ERB) disclosed that the erratic supply of kerosene being experienced at some filling stations in some parts of the country is due to the reduction in demand for kerosene.
In response to ZBT, ERB Public Relations Manager Namukolo Kasumpa said the intermittent supply is due to the overall national demand for kerosene which has been on the decline from an average daily consumption of 66,072 litres in 2011 to 25,790 litres in 2020 and subsequently 8,688 litres in 2021.
Kasumpa told ZBT that driving this decrease in demand has been the increased availability of close substitutes such as solar lamps, the rise in the number of households connecting to the ZESCO grid and the switch to more efficient sources of energy.
She explained that with the decline in demand for kerosene, most Oil Marketing Companies (OMCs) have opted not to stock the product and this may be contributing to the reported shortage of the product.
ERB however confirmed that Indeni closure had also affected the supply. “Further, as you may be aware, Indeni which was the main supplier of kerosene on the Zambian market has been placed under care and maintenance. Therefore, all kerosene products are now being imported by selected Oil Marketing Companies which make business decisions whether or not to import the product and what quantities”, ERB told ZBT.
Kasumpa mentioned that the importation of kerosene products by Oil Marketing Companies is not against the license conditions. She however mentioned that government has put in place tax waivers in order to encourage the continued security of supply of kerosene into the country and ERB will continue to monitor the situation and advise government regarding additional incentives that would promote the supply of kerosene in the country.
Users of paraffin have complained of being neglected with most OMCs discontinuing to Supply the commodity despite the demand from low income households.
