Tuesday, May 28, 2024

Chakwera-led administration moves to remedy fuel crisis in Malawi

Fuel in abundance

That there is a fuel crisis in the country is not even disputed by the Chakwera-led administration but instead of allowing the status quo to prolong, the administration is finding solutions, in the short run as well as in the long run to address the issue.

The President said of the crisis last week:

“I know that the current shortage of fuel is adversely affecting manufacturing, businesses, work, and domestic life, and I want to assure you that we are seized of this matter to ensure that there is the product in the service stations in the short term, while we work on the long term forex issues that are at the root of this problem,” Chakwera said.

However, the latest development to solve the problem is the government’s decision to start issuing fuel importation licenses or permits to companies or institutions that consume large quantities of the commodity.

This decision was announced by Secretary to the Treasury Macdonald Mafuta Mwale in Lilongwe on Tuesday.

Mafuta Mwale said an analysis of the fuel situation has revealed that the supply of the commodity continues to be erratic because of a number of reasons, including hoarding, panic buying, and the impact of blackouts.

He said, due to prolonged blackouts, most industries have resorted to using diesel generators, thereby doubling their diesel consumption.

The Treasury chief said, to address the challenge, firms that consume huge volumes of diesel will be issued with licenses to import directly from diesel suppliers for their industrial use.

“There are a number of sectors such as road construction, industries, and others which have the money but don’t have the fuel. These will be allowed to import directly from suppliers,” Mafuta Mwale said.

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