LILONGWE-(MaraviPost)-The fuel crisis in the country is expected to stabilize by January 20, following the procurement of 51.5 million liters of fuel.
Henry Kachanje, the Chief Executive Officer of the Malawi Energy Regulatory Authority (MERA), confirmed this development during an engagement with the Parliamentary Committee on Natural Resources on Friday, January 10th.
Kachanje explained that the procurement was achieved through a government-to-government (G2G) strategy based on a bilateral agreement with Kenya.
He also expressed concern about the prevalence of illegal fuel vending, which he described as both common and troubling, and called for police intervention to address the issue.
As part of the operation, Kachanje reported that 120 trucks have already been loaded in Tanga, with 40 trucks having crossed the Songwe border.
An estimated 80 trucks are expected to cross daily.
However, he noted a lack of interest from Malawian transporters to carry the fuel, prompting the government to engage Tanzanian truck operators for transportation.
Kachanje highlighted that a total of 1,409 trucks will be needed to complete the fuel haul amidst a foreign exchange crisis.
“I would like to inform this committee that we currently owe suppliers USD 52 million for products purchased on open credit,” said Kachanje.
Clement Kanyama, the Chief Executive Officer of the National Oil Company of Malawi (NOCMA), concurred with Kachanje, emphasizing the responsibility of all Malawians to engage in trade and export goods to generate foreign currency.
Kanyama pointed out that since the COVID-19 pandemic, the country has been affected by a foreign exchange crisis, impacting both NOCMA and Petroleum Industries Limited (PIL).
He explained that delays in fuel delivery occurred due to the upgrading of systems in Tanzania, which hindered the movement of fuel trucks. As a result, they received the fuel on January 8 instead of the expected date.
The Chairperson of the committee, Welan Chilenga, expressed satisfaction with NOCMA’s strategy of utilizing both normal and emergency arrangements to facilitate the import of 51.5 million liters of fuel.
Chilenga urged the government to take control of foreign exchange distribution, specifically from the Asian community and other foreign entities.
