Zambia restructures petroleum logistics to stabilise energy supply

Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Zambian government is stepping up its efforts to stabilise the supply of petroleum products through a series of logistical and regulatory reforms. This move follows the recent issuance by the Energy Regulation Board (ERB) of 43 new licences as well as six construction permits in the petroleum and solar energy sectors, with a clear emphasis on petroleum.

Logistics under pressure

According to a report from the Policy Monitoring and Research Centre (PMRC), a public think tank based in Lusaka, frequent interruptions in fuel supplies are not due to insufficient product availability but rather structural and internal logistical deficiencies. The distribution network, currently comprising 439 service stations according to the latest statistics from April 2025, struggles to meet rising demand.

In early January, Elijah Sichone, Director General of ERB, confirmed to local media that over 100 service stations in Lusaka and other major cities experienced petrol stock-outs. In response to these regular disruptions, the Zambian government has opted for a complete overhaul of national energy infrastructure and logistics.

Major strategic reforms

The emblematic reform within this strategy began in October 2024 with the conversion of the Tanzania-Zambia Mafuta (TAZAMA) pipeline, now dedicated exclusively to transporting diesel from Dar es-Salaam in Tanzania to the Indeni refinery. The refinery was simultaneously transformed into a storage depot, as part of a broader repositioning aimed at optimising local storage and distribution capacities.

The ERB has recently required that half of the national petroleum transport must now be handled by local carriers, a choice intended to strengthen domestic capacity. To support this measure, the organisation has approved the commissioning of over 85 new tanker trucks, along with six new service stations strategically spread across the national territory.

Medium-term objectives

These new provisions aim to significantly enhance the efficiency of Zambia’s petroleum supply chain, especially in historically underserved rural areas. Additionally, authorities plan to progressively reduce the country’s dependence on foreign intermediaries, identified as a major vulnerability.

Finally, these measures are also part of a broader national energy diversification strategy, with the gradual rise of liquefied petroleum gas (LPG) as an alternative solution to traditional fuels. However, the concrete effect of these initiatives on local employment, logistics costs, and final prices remains to be accurately assessed at this stage.

Subsea7 has secured a subsea installation contract from LLOG for the Buckskin South project, scheduled for execution between 2026 and 2027, strengthening its position in the Gulf of Mexico and boosting its order book visibility.
Global crude oil production is expected to rise by 0.8 million barrels per day in 2026, with Brazil, Guyana and Argentina contributing 50% of the projected increase.
Woodbridge Ventures II Inc. signs definitive agreement with Greenflame Resources for a transformative merger, alongside a concurrent financing of up to $10mn.
Interceptions of ships linked to Venezuelan oil are increasing, pushing shipowners to suspend operations as PDVSA struggles to recover from a cyberattack that disrupted its logistical systems.
Harbour Energy acquires US offshore operator LLOG for $3.2bn, adding 271 million barrels in reserves and establishing a fifth operational hub in the Gulf of Mexico.
Oritsemeyiwa Eyesan’s appointment as head of Nigeria’s oil regulator marks a strategic shift as the country targets $10bn in upstream investment through regulatory reform and transparent licensing.
Baghdad states that all international companies operating in Kurdistan’s oil fields must transfer their production to state marketer SOMO, under the agreement signed with Erbil in September.
A train carrying over 1,200 tonnes of gasoline produced in Azerbaijan entered Armenia on December 19, marking the first commercial operation since recent conflicts, with concrete implications for regional transit.
Subsea 7 has secured a new extension of its frame agreement with Equinor for subsea inspection, maintenance and repair services through 2027, deploying the Seven Viking vessel on the Norwegian Continental Shelf.
Caracas says Iran has offered reinforced cooperation after the interception of two ships carrying Venezuelan crude, amid escalating tensions with the United States.
US authorities intercepted a second oil tanker carrying Venezuelan crude, escalating pressure on Caracas amid accusations of trafficking and tensions over sanctioned oil exports.
California Resources Corporation completed an all-stock asset transfer with Berry Corporation, strengthening its oil portfolio in California and adding strategic exposure in the Uinta Basin.
The Ugandan government aims to authorise its national oil company to borrow $2 billion from Vitol to fund strategic projects, combining investments in oil infrastructure with support for national logistics needs.
British company BP appoints Meg O'Neill as CEO to lead its strategic refocus on fossil fuels, following the abandonment of its climate ambitions and the early departure of Murray Auchincloss.
The Venezuelan national oil company has confirmed the continuity of its crude exports, as the United States enforces a maritime blockade targeting sanctioned vessels operating around the country.
Baker Hughes will supply advanced artificial lift systems to Kuwait Oil Company to enhance production through integrated digital technologies.
The United States has implemented a full blockade on sanctioned tankers linked to Venezuela, escalating restrictions on the South American country's oil flows.
Deliveries of energy petroleum products fell by 4.5% in November, driven down by a sharp decline in diesel, while jet fuel continues its growth beyond pre-pandemic levels.
ReconAfrica is finalising preparations to test the Kavango West 1X well in Namibia, while expanding its portfolio in Angola and Gabon to strengthen its presence in sub-Saharan Africa.
Shell has reopened a divestment process for its 37.5% stake in Germany's PCK Schwedt refinery, reviving negotiations disrupted by the Russia-Ukraine conflict and Western sanctions.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.