LILONGWE-(MaraviPost)-Malawi’s new Government-to-Government (G2G) fuel procurement deal has brought significant cost savings, reducing fuel costs by approximately $100 per metric tonne.
According to National Oil Company of Malawi (NOCMA) spokesperson Raymond Likambale, the arrangement with OQ Trading of Oman and Abu Dhabi National Oil Company (Adnoc) is proving more cost-effective.
Under the new deal, diesel Cost, Insurance, and Freight (CIF) premiums have dropped to $77.17 per metric tonne, while petrol premiums now stand at $69.89 per metric tonne.
In contrast, the previous tender-based system had diesel premiums at $175.71 per metric tonne and petrol at $185.90 per metric tonne.
The first vessels carrying fuel under this deal are expected to dock at the Tanzanian port of Tanga between July 9 and 12, and at Beira in Mozambique between July 14 and 16.
Fuel will be transported to Malawi by both road and rail. Likambale assured Malawians that inspections and discharge will proceed without delay.
Consumers Association of Malawi Executive Director John Kapito has urged NOCMA to maximize the gains from the G2G deal.
Malawi spends around $600 million annually on fuel imports, and this new arrangement could help alleviate some of the financial burden.
This development comes as Malawi continues to navigate its fuel procurement challenges, with the country using approximately 1 million liters of petrol and 850,000 liters of diesel daily.
The G2G deal is expected to provide some relief, but long-term implications and potential risks, such as those highlighted by the World Bank, will need to be closely monitored.
