The Oil Marketing Companies Association of Zambia […]

The Oil Marketing Companies Association of Zambia (OMCAZ) has indicated that it hopes to see US$1.5 million allocated to Indeni Energy Company in the 2027 national budget to support the planned revival of the refinery and strengthen local participation in the petroleum sector.

Speaking in an interview with Zambian Business Times-ZBT, OMCAZ President, Dr. Kafula Mubanga said the allocation will demonstrate government’s commitment to the presidential directive on revitalising Indeni and implementing a quarterly fuel pricing review model.

Dr. Mubanga said the association expects the 2027 budget to provide a clear link between the President’s pronouncements on energy reforms and the actual resources committed to implementing them.

“We hope to see about $1.5 million allocated to Indeni to support the quarterly review model and the planned revitalisation of the refinery,” he said.

Dr. Mubanga expressed dissatisfaction with the 2026 budget allocation, saying it did not adequately address infrastructure development or provide for Indeni’s revival, despite the importance of the facility to the petroleum industry.

He said the absence of a clear allocation for Indeni has raised concerns about the government’s commitment to rebuilding local petroleum infrastructure and strengthening domestic participation in the sector.

Meanwhile, Dr. Mubanga stated that the 2027 budget should also provide sustainable funding for the Ministry of Petroleum, particularly following the President’s proposal to separate it from the broader energy portfolio.

He said the ministry should support the establishment and operations of a Petroleum Authority, which will have distinct responsibilities from the Energy Regulation Board (ERB), including research, fuel sampling and exploration.

Dr. Mubanga further indicated that adequately funding these institutions will help turn the proposed reforms into practical commitments rather than political pronouncements, while improving oversight and supporting the long-term development of the petroleum industry.

He added that reviving Indeni and adopting a more inclusive approach to the petroleum sector is important for restoring local oil marketing companies’ participation, which he said has been constrained by systems that do not adequately accommodate smaller Zambian operators.

Article by Philip Sinkala