Government signs new contracts with fuel companies
The government says it has signed new contracts to ensure a sustainable supply of fuel in the country following the recent shortages of the commodity.
Minister of Information Moses Kunkuyu disclosed this Friday in Blantyre during a public engagement on fuel supply.
“We have two running contracts with Lake Oil and Camel Oil with balance volumes of 70,000 metric tons. And two have been signed and one is pending…
“We have signed a contract with Addax on 3rd May 2023 for 148,000 metric tons. We have signed a contract with Augusta Energy for 83,000 metric tons, including Nacala volumes.
“We immediately applied for a Letter of Credit to unlock 2.5 million litres to be loaded from Nacala from week begging May 22, 2023. And we will sign another contract with Hapco on Tuesday next week,” he said.
Kunkuyu said the signing of the contracts will ensure continued supply of fuel in the country.
“We have 3.6 million litres petrol and 2.8 million litres of diesel on wheels in transit to Malawi and some have already reported at the strategic fuel reserves. Full recovery across the country is expected this weekend,” he said.
He further said the country is currently engaging fuel suppliers to consider making payments to them in local currency to reduce pressure on forex, which has been the major issue causing fuel shortage in the country.
“Not all currencies are recognised on international market and Malawi’s is one of them. Our currency is not recognised on that market. So talks are in progress with the specific supplies to deal in our local currency. I am confident to bring this out to the nation because it is being discussed,” he said.
Speaking during the discussion, Coxley Kamange, representing those in public transport sector, said government should take a proactive approach in ensuring that issues that affect fuel supply are resolved.
“It is those who use public transportation that suffer when there issues of fuel scarcity. We must ensure that these issues are solved,” he said.
Malawi requires 1.7 million litres of fuel per day.
In the 2022-2023 financial year, the country had a requirement of K600 million for fuel purchases.
