'We Have Enough Oil Reserves'

The Times of Zambia (Ndola) March 26, 2003 Posted to the web March 26, 2003 Stephen Kapambwe

THE Energy Regulation Board (ERB) says it has enough fuel stocks to last for four months and has called for calm in Zambia as the war rages in Iraq.

ERB executive director Moses Zama was confident in Lusaka yesterday current stocks in Zambia as well as supplies at the Dar-es-Salaam sea port would last through out the Iraq war.

He was speaking when Energy Deputy Minister Alex Musanya visited ERB offices on a familiarisation tour.

"We expect the stocks to run for three to for months and we think we have enough oil in the country to last through out the war in Iraq," Mr Zama said.

He said because of the measures put in place, Zambia had not experienced the escalation of oil prices that had affected most countries in the world.

"In some countries, prices have risen up to 60 per cent and as much as 80 per cent in other countries. But because we are here to protect the consumer, Zambia has not experienced the hikes (in oil prices) the world has been experiencing," he said.

He blamed the riots that rocked Venezuela, the world's fifth largest oil producer last December as well as the war in Iraq for the pressure on world oil prices.

"The riots that took place in Venezuela last December in 2002 and the war in Iraq are the two things that are putting pressure on oil prices in the world. We are hoping that the Iraq war ends soon to end this pressure," he said.

He warned that Government would no longer tolerate failure by oil marketing companies to reduce fuel pump prices when the fuel price dropped on the international market.

He appealed to the ERB to give the public ample warning whenever fuel price hikes were to be effected, saying consumers get agitated when price increases took them by surprise.

He said the ERB had a duty to ensure that consumers were protected from oil marketing firms.

Mr Zama also said ERB was in the final stages of making a decision on the application by Zesco to increase electricity tariffs by 16 per cent.