Minister of Energy Ibrahim Matola yesterday issued a public statement explaining the fuel status and measures being undertaken to stabilise the situation, but stakeholders have said the explanation offers no hope.
In a statement yesterday, the minister, who has been in hibernation since the latest episode of fuel scarcity now clocking six weeks and counting, said he has been holding emergency meetings with key stakeholders in the fuel supply chain, including major fuel importers, oil marketing companies, international suppliers and development partners.
Matola said multiple fuel vessels are being processed for offloading at the country’s ports of entry to ensure immediate availability, but fell short of mentioning expected stocks and timeframe.
He said: “We have secured essential foreign exchange facilities for immediate fuel procurement. A 24/7 Crisis Response Technical Team is now operational to monitor supply chain disruptions and provide immediate responses around the clock.
“We are strengthening collaboration with our neighbouring countries to enhance regional fuel security and minimise supply disruptions.”
Matola urged Malawians to avoid panic buying, report malpractices, maintain normal buying patterns wherever possible and rely on government communications for accurate information.
When contacted to clarify on the number of stocks expected and whether the foreign exchange facility referred to is different from the $50 million revolving facility with the Arab Bank for Economic Development in Africa (Badea), the minister was elusive.
He said: “Yes, I can confirm that I have issued that statement. But I am not taking any questions as I just came out of a meeting to pick your call, but will not take questions. Don’t you understand the English in the statement?”
However, reacting to the statement, Consumers Association of Malawi executive director John Kapito said Malawians want fuel, not mere statements where even government officials are contradicting themselves.
He said: “What they can do now is just to make fuel available on the market, they don’t need to waste time regarding where they will get forex because we know that we don’t have forex to bring in the fuel.
“Even getting another foreign exchange facility to start bringing in fuel supply is not sustainable because at the end of the day we will have to pay for that. ”
Kapito also said the type of arrangements that were able to give Malawi such foreign exchange facilities previously stopped doing so because the country never respected them.
“We have over K2 trillion now as a loan that we owe for these facilities, up from K1.4 trillion before this crisis. When we know that some of these facilities will dry out, what do we do? People just sat down, took things carelessly and lied to the President,” he lamented.
On his part, Petroleum Retailers Association of Malawi chairperson Happy Jere said the situation was worse as compared to two weeks ago. He said the minister’s statement provides little hope.
During a press briefing in Lilongwe yesterday, People’s Development Party president Kondwani Nankhumwa also called on Matola to resign over what he termed gross incompetence.
Malawi has been experiencing fuel stockouts in the past four years, largely due to foreign exchange scarcity.
