The Oil Marketing Companies Association of Zambia (OMCAZ) is unhappy with the Energy Regulation Board (ERB). They believe the ERB is allowing fuel suppliers to make excessive profits at the expense of consumers and the government.
Here are the key points of OMCAZ’s complaints:
- Lack of Standardized Inland Charges: They claim the ERB doesn’t have a clear system for transportation costs, allowing suppliers to inflate their profits.
- Unpredictable Pricing Model: OMCAZ argues the ERB changes the pricing model arbitrarily, causing them to buy fuel at high prices and then be forced to sell it lower, leading to losses.
- Unilateral Decisions: OMCAZ criticizes the ERB for making significant changes (like lowering transport rates) without consulting them.
OMCAZ is worried that these practices will lead to a fuel crisis in Zambia. They want the ERB to be more transparent, consistent, and predictable in its regulations. They believe this will create a stable and sustainable fuel supply chain.
