Wiping off fuel queues this week, at least 300 trucks loaded with diesel and petrol, procured through a Government to Government (G2G) agreement with Abu Dhabi, have reached Malawi this past week.
This development has significantly helped in alleviating the fuel crisis that had besieged the country intermittently over a period of four months. The National Oil Company of Malawi (Nocma) confirmed that about 1,409 trucks are scheduled to deliver a total of 51.5 million litres of fuel as part of this deal.
The influx of trucks began last Saturday and includes 100 from local transporters and 200 from Tanzanian haulers. Transporters Association of Malawi (TAM) spokesperson Frank Banda reported that an additional 100 trucks from TAM, 86 from International Haulage Brokers, and around 20 from Petroda are currently at Tanga Port in Tanzania, preparing to load fuel. Banda anticipates that these trucks, along with 200 trucks operated by Tanzanian companies, will begin entering Malawi through the Songwe Border by Tuesday of next week.
The arrival of these fuel shipments has already started to ease the severe fuel shortages that have plagued the nation in recent months. The Transporters Association and the Petroleum Retailers Association of Malawi have both acknowledged the significant positive impact of this renewed supply.
“With this haulage, we expect fuel availability to continue normalizing across the country,” said Banda, who emphasized the critical role the TAM plays in the transportation of fuel from ports in Tanzania and Mozambique to Malawi.
Despite the improvement in fuel availability, concerns over the persistent issue of a black market have been raised. TAM chairperson Happy Jere highlighted the need for government intervention to eliminate this underground trade, as it contributes to unnecessary shortages.
Minister of Energy Ibrahim Matola noted that the G2G arrangement is ongoing, with the government having invited expressions of interest from various refinery countries in the region, including Abu Dhabi, UAE, Saudi Arabia, Oman, Qatar, Bahrain, and Kuwait. Matola explained, “We want to see their margins and premiums to determine which contractor to select to manage the G2G operations.”
According to Nocma, Malawi consumes approximately 1.05 million litres of diesel and petrol each daily, resulting in an annual fuel import expenditure of around $600 million (approximately K1 trillion) based on data from the Reserve Bank of Malawi.
