While every Zambian is crying about the high cost of fuel, Government is reported to have abandoned Devon Oil Zambia Limited offer to supply the commodity at a discounted rate of K1.90/ liter and have opted to give the supply contract for October consignment to Agro Fuel run by a Mr. Sashi Patel.
In a letter to the Ministry of Energy Permanent Secretary dated October 10, 2023, seen by KBN TV, Devon Oil Zambia is appealing for the reinstatement of the contract to supply fuel on board its vessel known as MT HAIMA currently docked at the port of Dar Es Salaam.
“To further reiterate our commitment to supply Zambia with the product onboard MT HAIMA, please note that we can lock the October wholesale price ex Ndola at K19.50/liter. This represents a discount of approximatelyK1.90/liter vs. the October wholesale ERB price,” reads the letter in part.
Despite this generous discount that could benefit the struggling members of the public, sources have revealed to KBN TV that Devon Oil Zambia’s contract to supply fuel had been cancelled in order to guarantee the monopoly of supply by Mr. Sashi Patel of Agro Fuel even though the Government preferred supplier is bringing in the commodity at a higher price per liter compared to Devon.
Sources allege that some known top Government official is a business partner to Mr. Patel, adding that State House, through Mr. Lawrence Mwananyanda, Special Assistant to the President for Project Monitoring and Implementation, has directed Tazama Managing Director to facilitate for Agro Fuel to continue pumping fuel through Tazama.
In an offer letter dated 1st September, 2023 to Devon Oil Zambia Limited, Minister of Energy, Peter Kapala said, “noting the landing price offered by Devon Oil Zambia Limited to supply the Gasoil through the TAZAMA Pipeline within the month of September 2023, coupled with the fact that various processes are yet to be concluded under the Pipeline Open Access Regime and the imminent supply gap that is likely to arise in the intervening period, the Ministry of Energy writes to ACCEPT your proposal,” reads the letter of offer in part.
Sources say acting on that solid Government offer, Devon proceeded to import fuel which docked at the port of D ar Es Salaam but have been unable to supply through the TAZAMA Pipeline as Government seems to have back peddled and given business to Agro Fuel instead.
When contacted for a comment, Minister of Energy, Peter Kapala’s phone went unanswered by Press time while Devon Oil Zambia Managing Director, Chombe Gondwe refused to comment saying the matter was being handled administratively.
Note: Picture used for illustration purposes only