Government Suspends Dangote Fuel Supply Negotiations

By Chansa Maimbo

The Government has suspended negotiations with Nigeria's Dangote Petroleum Refinery over the proposed supply of petroleum products after determining that the deal was not commercially favourable.

Ministry of Energy Permanent Secretary Professor Ephraim Munshifwa says government was unable to secure lower fuel prices because Dangote's pricing is linked to international market rates, which continue to be influenced by strong global demand.

Professor Munshifwa said Zambia will instead rely on an alternative fuel supplier for the next four months before returning to the open access framework, which allows private companies to resume importing fuel.

He said the temporary arrangement is intended to ensure a stable supply of petroleum products while government transitions back to the market-based system.

He also explained that government's direct involvement in fuel procurement was only a temporary emergency measure introduced in response to uncertainties arising from the conflict in the Middle East. He reiterated that the open access framework remains government's long-term approach to fuel procurement.