Site icon The Times Group Malawi

Nocma lifts credit facility for oil firms

Hellen Buluma

State-owned National Oil Company of Malawi (Nocma) has cancelled an arrangement with oil marketing companies which was allowing them to lift fuel from Nocma reserves on credit.

Nocma Deputy Chief Executive Officer Helen Buluma said the institution will be dealing with the companies on up-front payment basis.

She said cancellation of the deal comes at a time the entity has been entrusted with the task of importing a larger chunk of the fuel the country requires.

“We give them [the companies] fuel on credit per month, which we tie in about K16 billion at a period of 30 days.

“This is government money. We cannot tie K16 billion to multinationals; so, we expect that they will be able to speak to their shareholders and financiers to pump in resources during this period,” she said.

Buluma said Nocma had already officially written the companies in January, announcing the end of the credit-based purchase agreement.

The companies involved include Puma, Total Energies, Petroda and Vivo Energy Malawi.

Officials from some of the firms declined to comment on what they rated as contractual matters.

This comes amid heated tension between Nocma and fuel importing companies over proposals to have the former get the lion’s share of fuel imported into the country.

The Parliamentary Committee on Natural Resources and Climate Change has been proposing that the government have 90 percent control of fuel imports through Nocma.

The proposal entails that Petroleum Importers Limited would be left to import only 10 percent of the country’s fuel requirements, down from the current 45 percent.

Facebook Notice for EU! You need to login to view and post FB Comments!
Exit mobile version