Malawi Energy Regulatory Authority (Mera) says it is considering alternatives following the disruption in the Middle East after joint US and Israel attacks on Iran that threaten fuel supply chains.
Middle Eastern countries such as the United Arab Emirates (UAE), Saudi Arabia and Kuwait use the Strait of Hormuz, the main maritime route for the Persian Gulf nations, to export fuel and other commodities to the rest of the world, including Malawi. However, the route is now blocked.
In the wake of the disruption, prices of fuel per barrel have already jumped to over $70 (about K122 570) from around $60 (about K105 060).
In a written response to a questionnaire yesterday, Mera public relations and consumer affairs manager Fitina Khonje said the war “is indeed a concern”, but that fuel suppliers have assured them of steady supply for some time.
She said: “Fuel importers have assured us that, at the moment, there are sufficient volumes at the ports of Beira, Dar es Salaam and Nacala for supply to Malawi for a foreseeable future.
“We hope the war does not escalate further and normalcy is restored. Meanwhile, fuel suppliers are looking for alternative fuel sourcing arrangements that can be utilised when need be. We will provide updates as appropriate.”
However, Khonje could not give an update on the fuel stocks in the country, but in February Chief Secretary to the Government Justin Saidi said the country had a 15-day fuel cover for the first time in five years.
International media outlets, including BBC and CNN describe the Strait of Hormuz as the strategic route for about 20 million barrels of oil and 20-30 percent of global liquefied natural gas (LNG) daily shipments.
Earlier, Economics Association of Malawi president Bertha Bangara-Chikadza said a surge in fuel prices is likely to subject countries that rely on imports such as Malawi to inflationary pressures on essential goods, transport and manufacturing.
Based on the Observatory of Economic Complexity database, in 2024, Malawi exported $25.5 million products to the UAE through raw tobacco, dried legumes and scrap iron as well as $1.33 million coffee, tea and spices to Saudi Arabia.
Yet that same year, the UAE exported to Malawi refined petroleum ($96.5 million), nitrogenous fertilisers ($63.7 million), and mixed mineral or chemical fertilisers ($36.2 million), while Saudi Arabia exported nothing to Malawi.
