Despite the high costs of petroleum products in Zambia, the market still promises and that's why new petroleum companies are being established. Our post today will help you understand the new and old petroleum companies in Zambia.
Image Credit: Surya biofuels
Here is a list of notable petroleum companies operating in Zambia:
- TotalEnergies Zambia – A major player offering a range of fuels, lubricants, and petroleum products.
- Puma Energy – Focuses on retail and wholesale fuel distribution across Zambia.
- Mount Meru Petroleum (Z) Ltd – Supplies petrol, diesel, kerosene, and other products, serving various industries.
- Spectra Oil Corporation Ltd – Provides petroleum products with a focus on mining and industrial clients.
- Oryx Energies Zambia – Supplies fuels and lubricants, with operations supporting industrial and commercial sectors.
- SGC Investments Ltd – Supplies fuel for sectors like mining and construction and is expanding its distribution depots.
- Dalbit Petroleum Zambia – Operates in fuel distribution and provides energy solutions across the region.
- United Oil Ltd – Delivers fuel and lubricants with a focus on industrial and automotive needs.
- Continental Oil Company Limited – Serves both retail and wholesale markets in Zambia.
- Unified Chemicals – Specializes in fuel supply and chemical products.
- Surya bio fuels. Operating in Zambia for few years now. They have a range of petroleum products.
These companies operate as Oil Marketing Companies (OMCs) and contribute to Zambia's petroleum distribution network. Their activities are regulated by the Energy Regulation Board (ERB), which oversees pricing and licensing to ensure market efficiency
Common petroleum-based fuels in Zambia
In Zambia, commonly used petroleum fuels include:
- Petrol (Gasoline): Used primarily in light vehicles and motorcycles.
- Diesel: Widely used for heavy vehicles, machinery, generators, and in the mining and agricultural sectors.
- Kerosene: Commonly utilized for lighting and cooking in households, especially in rural areas.
- Liquefied Petroleum Gas (LPG): Used for cooking, heating, and some industrial processes.
- Jet Fuel (Jet A-1): Supports the aviation sector for powering aircraft.
- Heavy Fuel Oil (HFO): Used in industrial applications like power generation and large-scale heating.
- Lubricants: Derived from petroleum, these are essential for automotive and industrial equipment maintenance
These fuels are imported and distributed by Oil Marketing Companies (OMCs), as Zambia does not produce crude oil domestically. Their pricing and availability are regulated to ensure stable supply and affordability
List of petroleum suppliers to Zambia
Zambia relies on a network of petroleum reservoirs and infrastructure for fuel supply, primarily through imports and local processing. Here are the key facilities and systems involved in supplying petroleum to Zambia:
TAZAMA Pipeline: This critical pipeline connects Dar es Salaam, Tanzania, to Ndola, Zambia. It transports crude oil feedstock to Zambia, which is later refined or stored.
Indeni Refinery (Ndola): Zambia's sole refinery processes the crude oil received through the TAZAMA pipeline. While its operations have faced challenges, it remains central to the country's petroleum supply chain.
Ndola Fuel Terminal: Located near the Indeni Refinery, this terminal serves as a key storage and distribution hub for petroleum products before they are dispatched to other parts of the country.
Bulk Fuel Depots: Additional storage facilities have been established across Zambia, including in Lusaka, Western, Luapula, and Northern provinces. These depots help decentralize fuel distribution and provide a buffer during supply interruptions.
Imports of Finished Products: When local capacity is insufficient, Zambia imports finished petroleum products from regional markets. This ensures adequate supply for domestic needs
These facilities form the backbone of Zambia's petroleum supply system, ensuring the availability of petrol, diesel, kerosene, and other fuels critical for the nation's economy.
International petroleum companies operating in Zambia
Several international petroleum companies operate in Zambia, focusing on activities such as fuel importation, storage, distribution, and retail. Key companies include:
- TotalEnergies - A major player in the Zambian petroleum market, operating fuel stations and engaging in wholesale and distribution.
- Vivo Energy - Operating under the Shell brand, Vivo Energy supplies fuel and lubricants across Zambia through a network of service stations.
- Dalbit Petroleum - This company handles the importation and distribution of petroleum products in Zambia, primarily catering to large-scale commercial and industrial users.
- Puma Energy - Active in fuel distribution and storage, Puma Energy operates service stations and supplies bulk fuel to various sectors.
- Gulfstream Petroleum FZC - Developing a significant bulk fuel terminal in Lusaka, Gulfstream plays a role in the import and local storage of petroleum products
These companies work within a framework influenced by Zambian government policies, including state-controlled entities like the Indeni Refinery, which is undergoing reforms to involve strategic private partners
Prices of common fuels in Zambia
The average prices of petroleum products in Zambia are as follows:
- Petrol (Gasoline): ZMW 32.70 per liter
- Diesel: ZMW 30.11 per liter (recently increased from ZMW 28.90)
- Kerosene: ZMW 26.95 per liter
- Jet A-1 (Aviation Fuel): ZMW 29.57 per liter
These prices reflect retail pump costs, including all applicable taxes and fees, as regulated by Zambia's Energy Regulatory Board. The adjustments in diesel prices were influenced by a rise in global diesel costs, while petrol prices remained stable due to minor changes in international rates.
