Malawi Energy Regulatory Authority (Mera) has suspended Simso Oil and Transport Company from getting fresh fuel deliveries after the firm was found hoarding about 200 000 litres of petrol at its depot amid dry service stations.
Mera’s decision comes at a time the country is facing a petrol scarcity that has disrupted transport, business operations and daily lives for many Malawians.
In a statement dated August 7 2025, Mera described the company’s conduct as “unjustifiable” and a breach of fuel distribution obligations.
“Following regulatory inspections at various depots of oil marketing companies in Lilongwe on 6 August 2025, Mera established that Simso Oil and Transport Company was withholding petrol at its depot without any justifiable reason,” reads the statement.
Mera has directed the company to release the withheld stock to its fuel stations and ordered that all importers and marketers cease allocating any further product to Simso until further notice.
The suspension was carried out under the Energy Regulation Act which empowers the regulator to grant, revoke or suspend licences and enforce compliance with conditions, especially during fuel emergencies.
The incident could also attract sanctions under the Competition and Fair Trading Act (2024), which penalises companies that abuse their market position or distort fair access to essential goods.
Reacting to the development, energy expert Grain Malunga, a former minister of Energy in the Bingu wa Mutharika administration, said Simso Oil’s conduct is not justifiable.
“When we are in crisis like this, it is not right to hoard fuel,” he said. “It is only when there are security concerns or if it is of national interest. Neither of which may apply.”
The Nation calculations show that the 200 000 litres of petrol is enough to fill 4 000 vehicles with 50 litres each.
