Minister of Information and Communications Technology Shadric Namalomba says demands by fuel suppliers for Malawi to clear about $60 million (about K105 billion) debt compounded the country’s fuel woes as they suspended supply.
The situation comes on the back of a fuel crisis that has seen motorists spending nights at service stations.
Namalomba said apart from the post-election violence in Tanzania that disrupted supply and movement of fuel to Malawi, the outstanding debt was another contributing factor.
He said: “We found that the suppliers were not being paid, there were a lot of arrears. It was about $60 million. For them to supply, they were insisting that we give them the money first, otherwise, there would be no supply.
“We managed that issue, making available the forex to both the National Oil Company of Malawi [Nocma] and Petroleum Importers Limited. We have also liaised with the suppliers to say, we are a new government, please open up your lines of credit while we are looking for money.”
Namalomba said a vessel at Tanga Port in Tanzania carrying 48 million litres destined for Malawi could also not discharge due to the protests.
He said a decision was made to redirect that vessel to Mozambique, but it has now started discharging at Tanga.
Namalomba assured that supply could stabilise in the next 48 to 60 hours.
In September, Nocma spokesperson Raymond Likambale said the 37 000 metric tonnes (MT) of fuel equivalent to 48 million litres comprises 20 000MT of petrol and 17 000MT diesel.
During the State Opening of the 52nd Session of Parliament on Friday President Peter Mutharika said his administration will revert to the Open Tender Fuel Procurement System instead of the government-to-government arrangement adopted by his predecessors.
