Persistent diesel scarcity over the past month has stalled economic activity in the country with businesses reporting increased operating costs and losses as trucks and machinery remain idle while businesses wait for fuel.
Transport operators said in separate interviews yesterday that they are experiencing prolonged delays in the movement of goods while businesses that rely on diesel for production, transport and backup power are facing increased operating costs and lost working time.
Malawi Union of Small and Medium Enterprises president James Chiutsi said small and medium enterprises are among those bearing the brunt of the shortage.
Station in Blantyre yesterday. | Macmillan Mhone
“Trucks are parked for days, costs have doubled due to black market prices of up to K10 000 per litre, and production has stopped for many millers and manufacturers,” he said.
Chiutsi called for measures to prioritise fuel supplies for productive sectors and a lasting solution to the foreign exchange constraints affecting fuel imports.
Malawi Milk Producers Association national director Herbert Chagona said unreliable fuel supplies are making it difficult for producers to run generators needed to cool milk during electricity outages, while transport challenges are affecting the movement of milk to processors.
Road Transport Operators Association of Malawi executive director Chrissie Flao in an interview said operators continue to incur fixed costs, including salaries and finance commitments, even when trucks are not generating income.
Malawi Energy Regulatory Authority consumer affairs and public relations manager Fitina Khonje said on Monday that the fuel shortages are directly linked to the country’s wider foreign exchange constraints, although fuel procurement remained a priority.
Malawi consumes about one million litres of petrol and one million litres of diesel a day, meaning the combined consumption is about 60 million litres a month and 720 million litres a year.
