Malawi Government agencies have moved to resolve a dispute with local fuel transporters over haulage rates and access to foreign currency by forming a joint task force to review the concerns.
The task force comprises officials from the Office of the President and Cabinet (OPC), Malawi Energy Regulatory Authority (Mera), National Oil Company of Malawi (Nocma) and the Transporters Association of Malawi (TAM) and it is chaired by Mera.
The development follows a meeting between the government agencies and TAM at OPC last Tuesday where the transporters presented their concerns over the haulage-rate reductions and difficulties accessing foreign exchange for fuel transportation.
TAM spokesperson Frank Banda said the association was hopeful that the taskforce would come up with a solution, including either restoring the previous haulage rates or providing local transporters with access to foreign currency.
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He said: “We presented our issues and the government appreciated the challenges that we are facing as transporters. The challenges are coming mainly because of shortage of forex in the country.
“With the reduction of transport rates, we have been greatly affected. We are losing a lot when it comes to sourcing forex. We presented the losses we are incurring and our hope is that the committee will come up with a solution. We are operating on losses.”
The dispute centres on haulage-rate reductions effected by Mera from August 1 following a seven percent reduction in fuel pump prices.
Depending on the route, the new rates were reduced by between 14 percent and 19 percent, significantly more than the reduction in pump prices.
Transporters argue that the cuts have compounded an already difficult operating environment in which they have to source foreign currency on the parallel market to meet costs associated with transporting fuel from neighbouring countries.
Banda claimed that the country’s
fleet had declined from about 850 tankers in 2020 to around 450, mainly because of foreign-exchange constraints and low haulage rates.
Mera spokesperson Fitina Khonje yesterday declined to comment on the latest developments, saying the task force should be given space to facilitate a resolution.
However, on August 26 she said haulage rates are reviewed in response to movements in key cost components, including fuel.
Khonje also said the currency of payment is guided by the country’s Exchange Control Regulations.
The dispute has attracted concern from economists who said resolving the transporters’ grievances is important to maintaining a stable fuel supply chain.
Foreign transporters are paid the same rates in US dollars at the official bank rate, while local transporters are paid in kwacha and must source foreign currency on the parallel market to meet costs incurred outside Malawi
