President Mutharika approves fuel imports shift
Malawi’s president Peter Mutharika has approved a set of reforms in the energy sector which include the shift in the role of importing fuel for the country to government-owned National Oil Company of Malawi (Nocma) from the private sector consortium Petroleum Importers Limited (PIL).
A statement issued by the Ministry of Natural Resources, Energy and Mining on Wednesday said other reforms approved by Mutharika included the transfer of the Distribution Fund that is currently given to Oil Marketing Companies (OMCs), in the form of distribution margins, back to Malawi Energy Regulatory Authority (MERA).
The purpose of the Distribution Fund, according to the statement, was to reward OMCs for supplying fuel to rural areas.
“Now that most OMCs have withdrawn from the rural areas, the Fund is no longer serving its purpose, hence the transfer to MERA,” reads the statement.
The president has also approved the introduction of the Dry Port Concept for running Strategic Fuel Reserves as well as Introduction of the Fuel Bulk Procurement System for Malawi.