Nocma’s 90% fuel share risks 1 000 jobs

 At least 1 000 truck drivers risk losing their jobs if the National Oil Company of Malawi (Nocma) is granted the 90 percent fuel importion share it is demanding.

 Fuel tankers operators said yesterday that Nocma prefers to use foreign transporters, which means that its dominance of the fuel sector will kill off local haulers, leading to job losses.

Nocma, which currently brings in 50 percent of the country’s fuel, is pushing to get a near monopoly, effectively edging private sector consortium Petroleum Importers Limited (PIL) which at the moment hauls in the other half.

The arrangement that Nocma is lobbying for, if approved, will leave PIL with only a 10 percent cut.

But Fuel Tanker s O p e r a t o r s a c t i n g spokesperson Kumbukani Kalembwe yesterday said the increase in the buying share to 90 percent by Nocma will have adverse consequences

on the country as whole.

He said there are over 1 000 employed truck drivers, including mechanics and over 900 fuel tankers who rely on PIL; hence, the move will stifle the consortium.

Kalembwe said: “The killing of PIL as a business will lead to job losses, loss in tax payable and loss of business to the transporters because PIL is the only fuel importer that uses local transporters.

“Costs of handling of the fuel are only known by the seller and this is a fertile ground for corruption and exaggerations; the sellers can put anything in the final figures for transportation, insurance and all incidental costs for delivering the fuel into the country.”

He said PIL uses the ex-tank incoterm in the importation of fuel which is authorised by regulations while Nocma uses the delivered at a place unloaded (DPU) incoterm

 or the delivered duty (DDU) incoterms which are not authorised by regulations.

Kalembwe said since the processes are not transparent, the costs are high and as a result they eat into the fuel Price Stabilisation Fund (PSF).

The PSF is a fund from the levy on fuel that was established to cushion the price of fuel in the country.

Kalembwe argued that the DDU or DPU costs are, therefore, not certain and as such they can easily deplete the PSF with claims that are not certain while on the other hand, ex-tank costs are known and are controlled.

“The suppliers do not engage local transporters who are unable to benefit from the processes. The suppliers arrange for their own handlers of the fuel and Malawians have no say. Malawians do not benefit,” he said.

According to Kalembwe, currently there are no Malawian transporters on the Tanzania route hauling fuel, pointing out that all tankers are foreigners.

PIL general manager Martin Msimuko said he could not comment as the proposal is being raised by a market player and not policymakers.

Dur ing a me d i a engagement in Lilongwe two weeks ago, Nocma deputy chief executive officer Hellen Buluma argued that fuel is a strategic commodity with serious implications to the economy to be left under the private sector.

She said: “Fuel is a strategic commodity which affects both the economy and national security. This is why we want to control how our product comes into the country.”

But when asked how the issues are expected to be resolved, Minister of Energy Ibrahim Matola yesterday said he could not give an answer since the matter is not yet on his table.

Currently, Nocma spends about $25 million monthly to import fuel