By William Kumwembe in Feruka, Zimbabwe
The government is contemplating getting fuel from Feruka pipeline in Zimbabwe via Mozambique, a move likely to cut the on-road transit distance and haulage costs compared to other traditional routes.
A delegation from the Ministry of Energy, Malawi Energy Regulatory Authority (Mera) and National Oil Company is in Zimbabwe for talks with Noica, a Zimbabwean company that manages the pipeline.
If it materialises, the deal would see the country saving on fuel transportation costs and time spent on ferrying the commodity into Malawi.
This also comes as Malawi is among 10 African countries with the highest petrol prices, according to Global Petrol Prices data.
At optimum level, Nocma is expected to be importing much of its annual requirements through the pipeline, which will then be hauled by road via Mozambique.
The distance to Feruka is slightly above 600 kilometres (km) while the distance between Blantyre and Beira port is about 786km.
Ministry of Energy Principal Secretary Alfonso Chikuni said local authorities were eager to see the deal done as it will help in broadening the importation scope.
He said the diversity is aimed at easing fuel haulage challenges and cutting transport costs as the country continues paying more for fuel haulage.
“All these routes will remain open options for security and consistency in fuel supply to Malawi,” Chikuni said.
Using current fuel import mix, Mera stipulates that 70 percent of the country’s total fuel imports come through Mozambique’s ports.
However, about 82 percent of fuel imports comes through Dar es Salaam port in Tanzania, which is almost double the distance to Malawi compared to either Beira or Nacala.
Beira now accounts for just 17 percent of fuel imports while Nacala is at one percent, according to available figures.
Noica Managing Director Peter Masviken said the firm is systematically positioned and ready to assist Malawi in the process.
“We stand ready to assist and to do it in whatever way possible,” he said.
Nocma CEO Mphatso Dulla said efforts will be deployed to ensure quick conclusion of the conversation on a possible deal.
“We look forward to starting as soon as possible and we are willing to transfer more than 70 percent of our fuel requirements,” he said
Petrol and diesel pump prices are seen at K1,746 per litre and K1,920 per litre, respectively.
