Malawi ponders long-term solutions to end fuel crisis
In a desperate attempt to end the recurrent fuel crisis, mostly resulting from forex shortages, Malawi Government has devised several measures to ensure security of supply, including negotiating to pay suppliers in local currency.
Speaking in Blantyre on Friday during a public engagement on fuel supply organised by Malawi Energy Regulatory Authority (Mera), Minister of Information and Digitisation Moses Kunkuyu said forex shortages have led to challenges in paying suppliers, leading to disruptions in fuel supply.
“There are countries that are practising that as well. Negotiations have just started and if this materialises, definitely this issue [fuel crisis] will be resolved,” he said.
Kunkuyu said government is banking on the flexibility of fuel suppliers on when it should start paying in local currency.
He also said Malawi has signed annual contracts with Lake Oil and Camel Oil which have balance volumes of 70 000 metric tonnes (MT) while new players, Addax are expected to supply 148 000MT and Augusta Energy 83 000MT, including Nacala volumes.
Minister of Energy Ibrahim Matola, while acknowledging that the fuel crisis was caused by shortage of forex, assured the nation of an end to both the fuel and power challenges, owing to strategies outlined as well as the 100 percent power generation resumption at Kapichira Hydro Power Station.
He, however, expressed disappointment with continued cases of vandalism of public infrastructure such as electricity poles and cables, describing such behaviour as detrimental.
Minibus Owners Association of Malawi secretary general Coxley Kamange urged government to be proactive in resolving such challenges, emphasising that fuel and electricity are the backbones of the country’s development.
In January this year, Mera chief executive officer Henry Kachaje revealed to the Parliamentary Committee on Natural Resources and Climate Change that the National Oil Company of Malawi (Nocma) and Petroleum Importers Limited (PIL) had accrued a combined debt of $78.3 million (K81 billion)..
