Malawi: Govt Says It Has Secured $21.5m and Allocated It to Tackle Fuel Crisis Amid Public Frustration

24 October 2024
Nyasa Times (Leeds)
By Fazilla Tembo

In a bid to alleviate the ongoing fuel crisis, the Malawian government has announced the allocation of $21.5 million to fuel importers, including the National Oil Company of Malawi (NOCMA) and Petroleum Importers Limited (PIL).

Minister of Information and Digitalization Moses Kunkuyu made the announcement during a press conference in Lilongwe, aiming to reassure the nation as fuel shortages continue to impact daily life.

Kunkuyu outlined the primary challenges contributing to the fuel shortages, including the suspension of fuel supplier loadings due to unsettled payments owed by NOCMA and PIL, alongside a persistent shortage of foreign currency.

"The fuel importers were unable to secure foreign currency to pay the suppliers, leading to a suspension of loading," he explained, emphasizing that this disruption has severely affected the Strategic Fuel Reserves (SFR) and led to increased speculative buying.

As part of the effort to stabilize the situation, Kunkuyu noted that the government expects to normalize fuel supplies by this weekend. Currently, 44 petrol trucks are en route, with 150 trucks carrying 5.7 million liters of petrol already in transit. Additionally, 800,000 liters are being loaded, while 5.5 million liters are currently being processed in Beira and Dar es Salaam.

Despite speculation from the public regarding potential increases in fuel pump prices, Kunkuyu firmly stated that the government has no intention of raising prices, aiming to quell growing concerns among citizens already feeling the pinch of economic strain.

Clement Kanyama, CEO of NOCMA, corroborated the government's assurances, stating, "A lot of filling stations will now receive the product to normalize the situation." He expressed optimism that the payments made to suppliers would facilitate a swift return to stability in fuel availability.

The announcement comes as a relief to many Malawians, who have faced significant disruptions in recent weeks due to fuel shortages. The impact on the socioeconomic well-being of citizens has been substantial, affecting transportation and daily activities.

While the government's financial injection into the fuel sector is a positive step, experts and citizens alike remain cautious, urging for long-term solutions to prevent future crises. As the situation develops, the government's actions will be closely monitored, with public trust hanging in the balance.

Read the original article on Nyasa Times.

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