National Democratic Congress (NDC) party leader Chishimba Kambwili has called on the government to increase petroleum product reserves as the US-Iran tensions have the potential to negatively affect the country’s fuel supply and pump prices.
Mr. Kambwili has urged the government to consider putting up necessary measures so that the country can have enough fuel reserves and not suffer the “great consequences” from the tension between the two countries.
“In the aftermath of Iranian attacks on two U.S. military bases in Iraq known to house 1,500 US troops, the price of crude oil jumped four per cent to about US$65 a barrel. Saudi Arabia, Iraq and Iran produce about 25 per cent of the world’s oil supply, and further retaliation from the US will send prices soaring,” Mr. Kambwili said in a statement issued by NDC spokesperson Saboi Imboela.
“Reports suggest that if a full-blown conflict happens, we will see similar events such as what we saw within Iraq when the United States went in there, and potentially oil prices will rise in excess of $100 a barrel. As the National Democratic Congress (NDC) party, in such times of escalation, economic stability is paramount and, therefore, deeply urge the Patriotic Front, PF, government to consider putting up necessary measures so that the country can have enough fuel reserves and not suffer the great consequences [emanating] from the US-Iran tensions.”
He said that Indeni refinery needs recapitalisation with new technology to ensure that at least 80 per cent of petroleum products consumed in the country are made by Indeni Oil refinery.
Mr. Kambwili said the increase in population and demand for petroleum products required the construction of new oil refineries “especially in Western Province so as to import more crude oil from West African countries, Angola and South America”.
©Zambia Reports 2020.