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National Oil Company of Malawi allays fuel concerns

State-owned National Oil Company of Malawi (Nocma) yesterday received two million litres of diesel at its Matindi and Kanengo fuel depots in Blantyre and Lilongwe, respectively.

In addition, 44 tankers carrying a total of 1.9 million litres of petrol yesterday passed through Songwe Border Post in Karonga District en route to Malawi.

Nocma said an additional 1.6 million litres of petrol was on the Tanzanian side and was expected to cross the Songwe Border Post into the country by yesterday night.

Likambale speaks to journalists at Matindi in Blantyre yesterday

The move is expected to ease fuel shortages that have forced motorists to queue at service stations the past two weeks for hours to refill their vehicles.

Nocma spokesperson Raymond Likambale yesterday said the new consignment of the commodity is expected to be on the market by tomorrow.

He said the importation of two million litres of diesel, which the Central and Eastern Africa Railway (Cear) transported by rail from Nacala Port in Mozambique, was off-loaded yesterday.

The Nocma spokesperson said the move highlights the firm’s on-going commitment to enhancing fuel availability in the country.

Said Likambale: “Malawians should not lose hope. As Nocma, we are doing everything possible to ensure that petrol is available in the country.

“I can confirm that today, as we are talking, 44 oil tankers carrying 1.9 million litres of petrol have arrived in the country through Songwe Border. There are also other tankers still on the Tanzanian side carrying 1.6 million litres and they will also cross the border today [Tuesday].”

Statistics indicate that Malawi uses close to one million litres of petrol and one million litres of diesel per day, bringing the total daily consumption to about 2 million litres.

Mathematically, this means the 3.5 million litres of petrol that arrived in the country yesterday will last only four days.

Nocma is complemented by Petroleum Importers Limited (PIL), a consortium of private sector petroleum marketing companies. Nocma and PIL each imports 50 percent of the country’s required volumes.

However, in recent months, foreign exchange shortages have been frustrating the process, leading to pockets of dry service stations.

Fortunately, Nocma has secured $37 million (about K64 billion) from the Arab Bank for Economic Development (Badea) to help in the importation of fuel into the country.

Likambale acknowledged that although the petrol consignment that has arrived may not completely eradicate the shortage, it will ease the scarcity as they bring in more volumes.

So far, by utilizing rail transport for fuel distribution, Nocma has successfully moved a total of 30.5 million litres using 818 rail wagons this year.

This method not only enhances the efficiency of fuel delivery but also helps to mitigate the impact of road congestion and other logistical challenges faced by the trucking industry, according to Likambale.

Malawi Energy Regulatory Authority (Mera) consumer affairs and public relations manager Fitina Khonje told The Nation on Monday that stakeholders will continue working to ensure that replenishment of stocks matches the rate of fuel consumption and depletion.

“We should, however, not lose sight of the fact that the challenges, forex inclusive, impacting on the flow of supplies transcend efforts of the fuel industry, so there is need for concerted effort,” she said.

The drop in the reserves to about 2.5 months of import cover, according to market analysts, reflected the increasing burden on the Reserve Bank of Malawi to support the foreign exchange market with liquidity.

Meanwhile, following the petrol scarcity, minibus operators across the country have also increased fares, forcing passengers to dig deeper into their pockets.

Minibus Owners Association of Malawi (Moam) general secretary Coaxley Kamange yesterday said drivers were incurring more costs parking vehicles at service stations overnight.

“My appeal to the relevant authorities is that they are the ones who know the cause of the crisis and they should do what they need to do to normalise fuel supply,” he said.

Mera, which owes fuel importers about K780 billion, has maintained the price of petrol at K2 530 per litre and diesel at K2 734 per litres since November 2023.

In recent months, various organisations, including Consumer Association of Malawi and some parliamentarians have asked Mera to raise fuel prices to reflect the realities of landed costs.

However, Mera has maintained the price of petrol at K2 530 per litre and diesel at K2 734 per litre since November 2023.

Appearing before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises on Thursday in Lilongwe, Mera director of finance Zacharia Ng’oma said the board has started reviewing fuel prices.

But Human Rights Defenders Coalition chairperson Gift Trapence yesterday demanded immediate and decisive action on the matter, saying the crisis can no longer be tolerated.

“The people of Malawi deserve leaders who can act,” he said.

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