British Petroleum (BP) Zambia Limited, which was barred from collecting fuel from its Ndola terminal due to a K26bn debt, has started operations after offsetting the debt.
The company owed Tanzania Zambia Mafuta (TAZAMA) forcing the Zambian government to intervene.
Zambia's Energy and Water Development Permanent Secretary, Peter Mumba announced last Friday that BP Zambia had been banned from buying petroleum products from Tazama until it liquidated a debt of K26,1bn.
“The company had been defaulting on payments for the fuel it bought from Tazama and the diesel shortage in the country was as a result of BP not stocking up the commodity,” he said.
Zambia was for the good part of last month and early this month hit with a shortage of diesel.
The minister explains that since BP Zambia has the largest number of filling stations in the country, the ban from collecting fuel from Tazama led to the shortage of diesel countrywide.
Tazama managing director, Largeman Muzelenga was over the moon in an interview with local media in Ndola yesterday that his firm was happy that BP Zambia had cleared the debt.
He said Tazama was committed to supplying petroleum products to Zambia but required the commitment of all players to effectively do that.
“We have enough fuel stocks at Tazama, which does not warrant any shortage in the country,” he said