The country should expect adequate fuel stocks in the course of next week, the Malawi Energy Regulatory Authority (MERA) have assured.
MERA’s Chief Executive Officer Henry Kachaje made the announcement during an interface with the Parliamentary Committee on Natural resources in Lilongwe.
The MERA boss acknowledged that the current situation is quite bad and as a regulator it is striving to reverse it.
He was quick to assure the nation of the 51.1 million litres procured under an emergency supply through the Port of Tanga which arrived on 29th December 2024 and has been cleared.
Kachaje disclosed that the first loaded 40 trucks have crossed the border Thursday night and continue to load as a total of 14090 trucks are expected to bring the product into the country.
“Our projection is that all things being equal bringing the product into the country, we should be able to have adequate fuel in the country in the course of next week.
“So what we’ve done to address the critical situation as it is to use the provisions in the current law to enable us procure an emergency supply that has been done on the back of the Memorandum of Understanding that we established with the government of Kenya which has a long standing government to government facility with oil producing countries”
He further stated that the country’s energy laws have a provision of emergency procurement and in a situation where the country is so distressed as it is now; it allows the Minister of Energy to intervene and activate an emergency procurement.
This has been done under the government to government deal that Kenya already has with oil producing countries like Abu Dhabi, Saudi Arabia and Dubai.
Malawi has for the first time ordered a complete vessel which brought in 4000 metric tonnes through Tanga Port translating to 51.1 million litres into the country which would’ve taken 25-30 days lasting more than a month.
Kachaje assured Malawians that besides the emergency procurement, the current suppliers continue to supply the commodity which means double procuring so that there is enough fuel which will go into filling stations and the rest as a buffer stock.
He stated that the pricing is comparing favourably with the current supply arrangements but it’ll be a little bit more with the use of Tanga Port.
According to the CEO, the National Strategic reserves have the capacity to stock 60 million litres of petrol and diesel.
The emergency 51.1 million litres continues with the normal procurement from current suppliers who on average are supplying between 45 to 50 million litres.
“Our expectation is that if we do continue with that procurement of on average of about 45 million litres monthly, that means we’ll take care of our daily needs while the 50 million litres could actually be designated to the strategic reserves so that the country has reserves in case of any emergencies”.
He told journalists of a Presidential directive that Malawi should explore importation of petroleum products through a government to government fuel procurement approach with clear guidelines to be followed set for any appointed entity to enter into a negotiation.
Following this development, it is expected that the National Oil Company (NOCMA) should solicit expressions of interest from several oil producing countries and a comparative analysis of the pricing will be done and Mera will then give a recommendation and approval to those that have offered competitive conditions and pricing favourable for Malawi.
Malawi continues to reel under its worst fuel crisis as motorists spend days on end on endless fuel queues.
