LUSAKA (Thomson Financial) - Zambia's government accused Total of causing recent fuel shortages in the country after the French group refused to import crude oil because of a dispute with the authorities over prices.
Finance minister Ngandu Magande said Total, which manages Zambia's only oil refinery, refused to import crude oil when the Zambian government rejected a request to increase pump prices by 25 pct.
Total and the Zambian government co-own the Indeni Oil Refinery, which has been facing constant closures due to obsolete equipment and lack of maintenance.
Magande said Total and the Zambian government will reduce their equal shares in the refinery in order to allow a third equity partner to take the remaining shares in the refinery, which needs about 65 mln usd to resume normal functioning.
This is the second time that Zambia has accused Total of causing fuel shortages in Zambia through its management at the Indeni refinery.
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