Malawi: Unending Fuel Fiasco - Malawi Faces Crisis As Shortages Resurface

16 October 2024

A wave of frustration swept across major cities in Malawi this week as fuel shortages resurfaced, leaving queues of over 80 vehicles snaking outside service stations in Zomba, Blantyre, and Mzuzu. The chaos has reignited fears of economic instability and disrupted daily life for countless Malawians.

During spot checks in Blantyre and Limbe, it was evident that the situation was dire: over 12 service stations had diesel available, but no petrol. At several locations, tankers were observed delivering petrol while frustrated motorists lined up, desperate for a chance to refuel.

Motorcyclist Precious Sitole, waiting under the scorching sun, expressed his despair. "I have not been able to conduct business since Monday evening because of the fuel shortage, and if this continues, my family is going to suffer," he lamented.

The black market has re-emerged as a troubling response to the scarcity. Minibus driver Bamusi Kambwiri reported buying fuel at K4,000 per litre on the illicit market, a cost that drivers are forced to pass on to commuters, exacerbating the financial strain on already struggling families.

At one Limbe service station, the scene turned chaotic as motorcyclists scrambled for petrol, accusing each other of queue-jumping. Meanwhile, some customers resorted to purchasing fuel in 20-litre jerry cans to secure their supply.

In Zomba, early risers formed a long queue at Petroda Filling Station, expressing their frustration over how the shortage was impacting their businesses. Similar scenes unfolded in Mangochi, while Lilongwe appeared to fare better, with most service stations stocked and residents celebrating Mother's Day without issue.

However, Mzuzu City faced a significant crisis. The busy Puma Service Station was completely out of petrol after depleting a 5,000-litre ration from the National Oil Company of Malawi (Nocma). Supervisors at Luwinga Petroda and Puma reported inconsistent petrol supplies for several days. "We accessed 10,000 litres on Monday, but that will soon be depleted this afternoon," said Limbani Mkandawire, a supervisor at Luwinga Puma.

The situation has become even more dire in Chitipa, where petrol prices have soared to K5,000 per litre on the black market after service stations ran dry for two weeks. Residents are now searching for fuel in Tanzania, while business owners struggle with transportation challenges and rising costs.

Malawi Energy Regulatory Authority (Mera) has acknowledged the supply chain interruptions, attributing them to panic buying fueled by rumors of impending fuel price adjustments. Fitina Khonje, Mera's consumer affairs and public relations manager, stated, "Replenishment of supplies is ongoing. The fuel sector is managing the impact of foreign exchange access challenges on the fuel supply chain."

Despite these reassurances, there remains a significant lack of transparency regarding fuel stock levels. Mera did not provide specific figures on the available stocks in the strategic reserves, raising further concerns about the stability of the fuel supply.

Pressure is mounting on Mera to increase fuel pump prices to reflect the realities of landed costs and avoid stock-outs. In August, it was reported that fuel importers incurred K785 billion in losses, prompting calls for immediate action to address the financial crisis within the sector.

As the current price of petrol stands at K2,530 per litre and diesel at K2,734, many Malawians are left wondering how long they can endure this cycle of shortages and price hikes. The government must act swiftly and transparently to restore stability to the fuel supply chain before the crisis escalates further, impacting the livelihoods of millions across the nation.

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