Mera, Nocma speak on fuel amid low volumes

Malawi Energy Regulatory Authority (Mera) and National Oil Company of Malawi (Nocma) Limited have assured the nation of steady supply of fuel amid dwindling volumes attributed to foreign exchange shortages.

The assurance by the two State agencies follow an update yesterday by Nocma acting chief executive officer Micklas Reuben to the Parliamentary Budget Cluster on Agriculture and Food Security and Natural Resources and Climate Change on the status of fuel in the country.

Responding to a question from cluster co-chairperson Welani Chilenga on the actual volumes of petrol available, Reuben pleaded that he should not disclose that information.

“For petrol, allow me not to mention [the volumes] because I don’t want to create anxiety. Suffice to say that petrol will start flowing into the country as the loading of fuel is taking place at the port in Tanzania,” he said.

But Reuben said the country has diesel to last 14 days. He said Nocma was expecting six million litres by next Friday.

Reuben said: “Yesterday, 1.3 million litres were loaded by Adax and today 1.2 million litres are being loaded.

“Camel Oil has committed to loading 100 trucks which translate into 3.5 million litres of petrol. Loading will start tomorrow up to Tuesday.”

However, he lamented foreign exchange challenges, saying they are affecting the importation of fuel.

Reuben said Nocma was depending on an open credit facility whereby it uplifts volumes and pays later once forex has been secured.

He said: “Currently, NBS Bank, FDH Bank, Standard Bank and National Bank have committed to provide a total of $17 million, but the forex will go towards the payment of volumes that were already uplifted on open credit.

“Once that payment is made, Nocma and the suppliers will open another round of open credit to start the new financial year.”

In an interview after the meeting, Reuben urged the public not to panic, saying the importation of fuel is a continuous process and Nocma is still importing the products.

He assured that there are trucks in transit at the moment while some are loading in Tanzania and Mozambique, further disclosing that Nocma cleared the $61.5 million debt that was outstanding as of January this year.

In a separate interview, Chilenga said the cluster cannot say much on the fuel quantities.

“The problem is a result of forex shortage. We cannot blame anyone. It is everyone’s problem. We are not exporting enough to generate enough forex,” he said.

However, he urged Nocma to ensure that the debt accumulated on open credit is settled so that come April, the country should be able to have fuel and implement the proposed 2023/24 National Budget.

Chilenga also hoped that tobacco will bring in enough forex to improve the forex reserves, adding there is a need to speed up on mining agreements so that the country is able to export minerals and generate forex. Petroleum Importers  

Limited chief executive officer Martin Msimuko could not be reached on his phone to give the status of fuel for the consortium of private sector oil marketing companies.

Mean while , in a statement hours after Nocma brifed the cluster, Mera said the current combined fuel stock levels of all active importers were “sufficient to meet the country’s demand for the foreseeable future”.

Mera data shows that per day Malawi consumes 845 000 litres of petrol and 834 000 litres diesel.

Mera and Nocma assurances come hot on the heels of a fuel shortage that crippled the economy late last year and has been rearing its head in recent weeks in some areas such as Blantyre, Zomba, Ntcheu, Dedza and Mangochi