TAZAMA: Zambia Runs Out Of Diesel

A crisis is gripping Zambia, but it’s not a crisis of scarcity. It’s a crisis of distribution. Across the country, more than 123 filling stations have run completely dry, leaving motorists stranded and an economy dependent on diesel on the brink of a standstill. Yet, at the same time, a significant amount of diesel—over 36,000,000 metric tons—is reportedly sitting idle in the TAZAMA Pipeline’s Ndola storage tanks, belonging to Devon Oil Zambia.

This is the perplexing paradox at the heart of Zambia’s current fuel problem. The country has the fuel, but for reasons that remain unclear, it’s not reaching the people who need it most. This isn’t just an inconvenience; it’s a symptom of deeper issues within the nation’s energy supply chain.

Timeline of the Crisis and Public Announcements

• Late 2024: The Energy Regulation Board (ERB) and the Ministry of Energy begin issuing a series of statements addressing localized fuel shortages. The ERB cites “cross-border logistical challenges,” including congestion at ports and new customs laws in neighboring countries, as primary causes.
• December 2024: The ERB dispels rumors of a looming fuel shortage, assuring the public that there are sufficient diesel stocks. It acknowledges logistical challenges affecting petrol imports and announces measures to address them, such as temporarily relaxing movement restrictions for fuel tankers.
• April 2025: The Ministry of Energy announces the commencement of offloading the first diesel consignment under the “Open Access Framework,” a new model that allows private Oil Marketing Companies (OMCs) to import fuel via the TAZAMA pipeline. This is hailed as a major step toward enhancing fuel security and supply chain efficiency.
• May 2025: The Ministry of Energy commissions a new, 102 million-liter fuel storage depot in Lusaka West, intended to strengthen the country’s strategic fuel reserves. The Ministry reassures the public that the country has sufficient diesel stocks.
• June 2025: The Energy Minister briefs the nation on the country’s severe electricity crisis, resulting from a drought that has hit the nation’s hydroelectric power generation. This crisis increases reliance on diesel generators, adding pressure to the fuel supply. The government announces measures to tackle the power deficit, including the deployment of diesel generators.
• July/August 2025: The current diesel shortages escalate, with reports of over 123 filling stations running dry. This is despite the repeated public assurances of adequate national stock and the recent strategic investments and policy changes. The current crisis is particularly puzzling given the reported 36 million metric tons of diesel in the TAZAMA pipeline, suggesting the problem is not a lack of supply but a failure of distribution.

The TAZAMA Pipeline and Its Central Role

For decades, the TAZAMA Pipeline has been a lifeline for Zambia, transporting crude oil and, more recently, refined petroleum products from the port of Dar es Salaam in Tanzania to the Ndola terminal in Zambia’s Copperbelt province. Jointly owned by the governments of Zambia and Tanzania, the pipeline is a critical piece of national infrastructure. Recent upgrades, including the introduction of a Drag Reduction Agent (DRA), have even boosted its efficiency and daily throughput, a move lauded by government officials as a “game-changer” for the country’s energy security.

The pipeline’s capacity and recent improvements should, in theory, be helping to alleviate fuel shortages, not be a source of a paradox. The fact that a single company, Devon Oil Zambia, is reported to be holding such a large volume of diesel in the TAZAMA tanks raises serious questions. Why is this fuel not being released into the market?

Possible Scenarios Behind the Bottleneck

While the exact reasons for the bottleneck are not publicly confirmed, several factors could be at play:

• Financial and Logistical Issues: There could be a financial dispute between Devon Oil and TAZAMA, or with the government, regarding payment, taxes, or logistical fees. The complex web of stakeholders in the petroleum sector, from importers to transporters and marketing companies, can be prone to disputes.
• Operational Delays: There could be technical or operational issues preventing the fuel from being offloaded from the TAZAMA tanks and distributed to the various oil marketing companies (OMCs) that supply the retail stations.
• Market Dynamics: The situation could also be related to broader market forces. The Energy Regulation Board (ERB) recently maintained fuel prices for August, which may be a factor in how and when OMCs choose to distribute their stock.

The Broader Context of Zambia’s Fuel Challenges

This diesel crisis is not an isolated event. Zambia’s petroleum supply chain has long faced challenges. A 2020 study highlighted how inefficiencies in the government-owned TAZAMA and the now-repurposed Indeni refinery have historically contributed to high fuel prices and supply disruptions. The country has made strides, such as allowing private OMCs to import and distribute fuel, but the reliance on a single pipeline and the complexities of the system continue to present vulnerabilities.

The crisis also comes at a time when Zambia is facing a severe power crisis due to low water levels at the Kariba Dam, which has led to widespread power cuts. This has pushed businesses and households to rely even more on diesel generators, escalating the demand for a product that is already in short supply at the pumps.

Moving Forward

The current situation is a stark reminder that simply having a physical stock of fuel is not enough. The entire supply chain, from the pipeline to the retail station, must be efficient and transparent to ensure the energy security of the nation. The Zambian government and relevant regulatory bodies must urgently address this distribution bottleneck. This will likely require:

• Transparency and Communication: Providing clear, public information about the status of the fuel in the TAZAMA tanks and the plan for its distribution.
• Swift Intervention: Mediating any disputes or addressing any logistical hurdles that are preventing the fuel from reaching the market.
• Long-Term Solutions: Continuing to reform the energy sector to create a more resilient and competitive market, perhaps by streamlining regulations and encouraging a more diverse range of distribution methods.

The people of Zambia need more than just hope—they need action. The diesel is there. The challenge now is to get it into the tanks of the vehicles that power the nation.