Information Minister Moses Kunkuyu has faulted fuel panic buying for quickening Malawi’s daily fuel consumption from 1.7 million litres to 2 million litres, with a projected monthly demand of 60 million litres.
Kunkuyu said this when he briefed reporters on the state of fuel scarcity in the country.
“Fuel service stations and storage facilities have a seven-day fuel stock cover; more fuel is expected next week for a 12-day cover.
“Meanwhile, the Ministry of Finance is working on the ECF [Extended Credit Facility] and an agreement with suppliers is being worked on to solve the fuel challenge,” Kunkuyu said.
According to the minister, 7 million litres of both diesel and gasoline are expected to start arriving in the country this weekend, a development that is expected to stabilise fuel availability.
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Kunkuyu has further disclosed that the National Oil Company of Malawi (Nocma) has secured $50 million from Badea for the importation of fuel.
Meanwhile, Nocma Chief Executive Officer Clement Kanyama has said, with the $50 million facility, his firm will be in a better position to fill up the national strategic fuel reserves.
He said the government has started importing fuel through the Nacala Railway Corridor, a development that would make Malawi one of the biggest users of the Indian Ocean Port of Nacala.
This is expected to address the high cost of road transport from the ports of Beira in Mozambique, Durban in South Africa and Dar es Salaam in Tanzania.
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Meanwhile, Kunkuyu has disclosed that the government has this year paid back 100 million US dollars to Afreximbank, money that the previous administration borrowed.
The minister said the money is part of 800 million US dollars that was borrowed from the bank.
Malawi pays about $10.00 per tonne per kilometre against the average Southern African Development Community price of $7.00 to transport fuel.
