Zambia is ramping up fuel storage and supply coordination to shield its economy from surging global oil prices driven by escalating tensions in the Middle East.
The government says it has implemented targeted measures to safeguard national energy security and cushion consumers from adverse price shocks caused by logistical and production disruptions in the Middle East.
At the centre of the strategy is a plan to establish three new oil depots with a combined storage capacity of 20 million litres, complementing existing infrastructure in the copper-rich Southern African nation.
According to the Energy Regulation Board (ERB), Zambia’s total monthly fuel consumption stands at about 30 million litres, underscoring the urgency of expanding reserves.
Energy Ministry Permanent Secretary Ephraim Munshifwa said authorities were taking an inclusive approach, engaging stakeholders across the petroleum value chain — including Oil Marketing Companies, transporters, and regional partners — to ensure coordinated and sustainable solutions.
“We (Zambia) are looking at coming up with three strategic petroleum storage depots in Mongu District (Western Province), Mansa District (Northern Zambia’s Luapula Province), and Chipata District (Eastern Province), with a combined capacity of 20 million litres,” Munshifwa said.
Mounting Pressure From Global Oil Markets
Zambia’s intervention comes as global oil markets reel from geopolitical instability in the Middle East, which has disrupted supply chains and driven prices sharply higher.
Before the escalation, crude oil traded at around $78 per barrel. By mid-March 2026, Brent crude had surged to approximately $101.80 per barrel, placing significant pressure on import-dependent economies such as Zambia.
Industry players have warned that prolonged volatility could trigger fuel shortages and steep price increases, raising production costs — particularly in the mining sector, which is the backbone of Zambia’s economy.
“The Government needs to find a way of increasing storage capacity that will assure fuel security of up to six months if the country is to survive the current scenario,” said Fedelis Chanda, a director at Moxico’s Mimbula Mine.
“Mining consumes a lot of fuel because the nature of operations which requires the use of heavy machinery.”
In response, the government has sought to stabilise domestic prices despite global trends. Munshifwa said authorities had deliberately avoided raising fuel prices in March, even as petroleum prices rose across African markets.
“This is why in the month of March, no upward adjustments were made, despite petroleum prices across African markets increasing by 30%,” he said.
Zambia’s current stock position offers some short-term relief. As of March 19, 2026, total available diesel stocks — including inland reserves and supplies in transit through Kigamboni in Dar es Salaam, Tanzania — stand at 285 million litres.
“Based on an average national daily consumption of 5 million litres, this represents approximately 56 days of cover,” Munshifwa said.
Still, analysts say the country’s push to expand storage capacity signals a broader shift towards building resilience against external shocks, as energy security becomes an increasingly critical pillar of economic stability in Africa’s resource-dependent economies.
