CDEDI demands accountability on fuel importation

LILONGWE-(MaraviPost)-The country’s civil rights group Centre for Democracy and Economic Development Initiatives (CDEDI) has challenged Malawians to demand transparency, accountability, and strict adherence to established procedures, guidelines, and laws regarding fuel importation.

CDEDI Executive Director Sylvester Namiwa told the news conference on Wednesday, May 7, 2025, “As the government works to transition fuel procurement from the Open Tender System to government-to-government, there is a need for integrity in the process”

Namiwa stressed that once the deal materialises, Malawians must demand a reduction in fuel prices.

He however alleged that the country’s fuel shortages are man-made due to a lack of integrity, among other things.

HERE IS CDEDI FULL STATEMENT ISSUED..

THE MAN-MADE FUEL CRISIS MUST BE REJECTED

The Centre for Democracy and Economic Development Initiatives (CDEDI) calls upon all Malawians to demand transparency, accountability, and strict adherence to established procedures, guidelines, and laws regarding fuel importation. As Malawi transitions from reliance on the Open Tender System (OTS) to Government-to-Government (G2G) fuel procurement, citizens must
insist on integrity throughout the process.

At the same time, CDEDI urges all Malawian consumers to demand an immediate reduction in fuel pump prices once the G2G system takes effect,
because lower procurement costs should automatically translate into lower prices for fuel and by extension essential goods and services.

Meanwhile, CDEDI warns Malawians, as both taxpayers and voters, that the Malawi Energy Regulatory Authority (MERA) is crafting a scheme that could burden fuel consumers with nearly MK1 trillion in payments to importers, covering debts accrued since 2020 due to under-recoveries caused by the depletion of the Price Stabilisation Fund (PSF) levy.

The ongoing push to increase pump prices, citing dubious reasons like smuggling, is just a coverup.

The Reality Behind Fuel Procurement Malawians should be aware that between March 9-15, 2025, a delegation traveled to Dubai, UAE, securing some of the lowest fuel premium deals compared to neighbouring countries such as Zambia, Tanzania, Mozambique
and Kenya.

According to Principal Secretary (PS) for Energy, Eng. Alfonso Chikuni, led Task Team to Dubai, the most competitive bids were submitted by:

• Kuwait Petroleum Trading Corporation (KPTC)
• 90-day credit: $51.66 per metric ton
• 180-day credit: $62.56 per metric ton
• ARAMCO (Saudi Arabia)
• 90-day credit: $52.12 per metric ton
• 180-day credit: $63.24 per metric ton
• OQ Trading (Oman)
• 90-day credit: $64.47 per metric ton
• 180-day credit: $74.53 per metric ton
• 
  Currently, Malawi is paying far more for fuel. The country has been sourcing fuel from Adax at $175 per metric ton via OTS. Worse still, Malawi received 51
  million liters of fuel on January 15, 2025, from Gulf Energy Limited, priced at an alarming $195 per metric ton for petrol and $188 for diesel, nearly triple the
  rates negotiated through G2G.
  Political Interference and Market Manipulation
  CDEDI is deeply concerned that Malawi’s ongoing fuel shortages are artificially
  created by powerful figures at State House, manipulating payments through
  the Reserve Bank of Malawi (RBM) to frustrate suppliers. Malawi now owes
  suppliers $72 million, well beyond the agreed $40 million credit threshold.
  This calculated strategy forces suppliers to halt deliveries, leading to long fuel
  queues across the country. Meanwhile, other suppliers with contracts dating
  back to 2021 (Carmel Oil), May 2023 (Augustus), and December 2023 (Adax)
  have ample fuel volumes ready for delivery, but forex restrictions are
  preventing their shipments.
  In contrast, when the Gulf Energy deal was processed in November 2024,
  letters of credit worth $37 million were finalised in just two weeks, while
  traditional suppliers remain unpaid for over $90 million in arrears.
  CDEDI’s Demands
  CDEDI calls upon Malawians to demand swift action on the following:

1. A forensic audit of NOCMA, covering transactions from 2018 to the present.
2. Immediate progress updates on the G2G arrangement, with clear timelines,
   or Energy Minister Ibrahim Matola must step down.
3. The dissolution of President Chakwera’s fuel committees within seven days,
   since NOCMA has been appointed to handle procurement.
4. The launch of a national “Fuel Prices Must Fall” campaign, given the
   dramatically lower fuel rates secured in Dubai.
   If these demands are not met within seven days, CDEDI will have no choice but
   to mobilise peaceful protests against the continued financial exploitation of
   Malawians.
   Finally, any attempt to revive the Gulf Energy deal despite better offers should
   be regarded as outright theft, and those pushing for it must be held
   accountable.
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