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Petroleum Importers Limited contented with fuel importation deal

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As dust seems to be settling on who takes over the fuel importation task between government owned, National Oil Company of Malawi (Nocma) and Petroleum Importers Limited (PIL), the latter has reiterated that a recent deal made between the two that they equally split the imports requirement is premised on principles of a liberalised economy.

Media reports indicated last week that the two firms resolved that each should import 50 percent of the country’s fuel requirement.

PIL General Manager, Enwell Kadango, in an interview ruled out fears that the move might affect its operations and standing on the market.

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The resolution has been arrived at after close to four years of tussling upon a proposition in 2013 by the Government of Malawi that Nocma takes over the bulk fuel importation task entirely.

Over the years, PIL has been importing 70 percent of the country’s fuel. According to the media reports, PIL stipulates the condition that the two companies sign a 10 year contract for the 50- 50 split, regardless of any change in policy or law.

According to Kadango, the two sides are geared to working together towards a sustainable fuel supply in the country.

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“We have been fully involved in the fuel importation for the past 15 years and we know the Government has set up some strategic reserves to keep fuel. It is upon the whole industry to work together to make sure that the country has enough fuel reserves,” said Kadango.

He said the 50-50 importation option is being used to rotate the fuel in the reserves.

Kadango said the option will still be premised on universally accepted liberalised market principles.

“We believe it is also our role to assist where there is need and make sure the rotation of fuel is done as required,” he said.

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