Economy

Petroleum transporters urge full implementation of local content law amid toll fee hikes

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The Petroleum Transporters Association of Zambia (PTAZ) has called for the full implementation of the local content statutory instrument to cushion the impact of increased toll fees announced by the National Road Fund Agency (NRFA).

PTAZ General Secretary, Benson Tembo, said the effective enforcement of local content laws would help transporters manage the higher costs following government’s decision, in line with the 2026 National Budget, to hike toll fees for medium and heavy-duty vehicles at toll gates across the country.

In a statement issued on Thursday, Tembo said government should fully implement Statutory Instrument (SI) No. 68 of 2025 to give comfort to local transporters.

“This statutory instrument has guaranteed 100 percent transport business for local Zambian transporters from the mines and it has taken effect today, January 1, 2026,” he stated.

Tembo further urged government to enforce SI No. 35 of 2021, which provides a 50 percent quota of transport business for Zambian citizen-owned companies on imported and exported commodities, and 100 percent for all local transport business.

He commended government for reviewing the proposed toll fees at the Michael Chilufya Sata Toll Plaza and other toll gates countrywide.

Read more: National Road Fund Agency reportedly earns K4 billion, exceeds 2024 toll collection target

“We are grateful to government for listening to our stakeholders over the recently proposed toll fees at Michael Chilufya Sata Toll Plaza and all the toll gates around the country,” he said.

Tembo noted that the prompt review had given transporters relief.

“On December 30, 2025, we expressed our concerns over the proposed increase of toll fees and it is gratifying to hear that the proposed fees at Michael Chilufya Sata have been reviewed downwards from the initial fee of K1,200 to now K600.”

He said the move confirmed that government listens to citizens when concerns are raised genuinely.

Tembo described the transport sector as one of the largest employers in the region, adding that reducing the cost of doing business would spur growth and create more jobs, especially for young people.

However, he observed that statutory instruments to effect the new toll fees had already been issued, with what he termed a minimal adjustment from K250 to K300 across all toll gates, which he said was manageable.

Tembo also expressed gratitude to government for approving the bulk procurement of petroleum products, describing the move as long overdue.

He said bulk procurement would guarantee security of supply, reduce fuel costs, and correct distortions caused by private sector-led procurement.

“The government bulk procurement will make all the strategic TAZAMA storage depots active once again unlike now when they are almost white elephants,” he said.

He cited depots in Chipata, Mpika, Mansa, Mongu, Solwezi, and the recently constructed Lusaka depot as facilities that needed full utilisation to sustain jobs and surrounding businesses.

Tembo said full utilisation of the depots could allow Zambia to move from monthly to quarterly fuel price reviews, enhancing economic predictability.

“The bulk procurement of petrol approved by the Cabinet will guarantee business for the local fuel transporters which is not the case today.”

He accused some oil marketing companies of giving themselves undue advantage by allocating transport contracts to their own fleets or foreign transporters.

“They have been giving transport contracts to foreign transporters and some selected few transport companies while leaving a lot of local transporters to merely operate on spot hire and as subcontractors,”Tembo claimed.

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