Government has assured the public that the current fuel scarcity is expected to stabilise by this weekend, provided that normal supply chains remain uninterrupted.
Addressing the press in Lilongwe yesterday, Malawi Energy Regulatory Authority (Mera) chief executive officer (CEO) Henry Kachaje attributed the hiccups in fuel supply to a public holiday in Tanzania and post-election violence in Mozambique, among other challenges.
The briefing was jointly held with Minister of Information and Digitisation Moses Kunkuyu, and Nocma CEO Clement Kanyama to update the public on the fuel situation.
Said Kachaje: “Once the supply chain is disturbed, we are greatly affected as a country because we expect to receive fuel every day due to our current situation. That is why it is important to always have fuel in our storage facilities.”
In his address, Kunkuyu stated that authorities have allocated $21.5 million (about K37.6 billion) to fuel importers to pay suppliers and authorise the loading of 26.9 million litres of fuel to mitigate the ongoing crisis.
The minister added that apart from the 44 trucks en route to Malawi, 29 trucks carrying 1.1 million litres of petrol are also on the way.
Said Kunkuyu: “There are also 150 trucks carrying 5.7 million litres of petrol and nine trucks with 350 000 litres of diesel. Additionally, 23 wagons are loading 800 000 litres to be dispatched on October 23, 2024.
“Furthermore, 144 trucks carrying 5.5 million litres of petrol are currently being loaded in Beira and Dar es Salaam, along with 100 trucks with 3.8 million litres of diesel.”
He also disclosed that government has secured an additional $50 million from a revolving facility with the Arab Bank for Economic Development in Africa (Badea), with ongoing negotiations to extend the loan to $100 million.
Kunkuyu attributed the current fuel crisis to a 10-day suspension of fuel deliveries by suppliers who are owed substantial amounts by the government, as well as persistent foreign exchange shortages.
Despite public pressure to increase fuel prices to normalise supplies, the minister said government will not take that route.
He observed that raising fuel prices would lead to an increase in prices of goods and commodities, which government aims to avoid.
Kunkuyu said recommendations to increase fuel prices have been made over the past three years, but the government has remained steadfast in its decision.
But Kachaje pointed out that the current fuel prices are not cost-reflective.
On his part, Kanyama indicated that it takes a day for fuel to be transported by rail from Nacala to Malawi, while it takes two and a half days by truck from Beira. From Dar es Salaam, it takes four and a half days.
