Fuel retailers speak on supply

Fuel Retailers Association of Malawi says it is facing supply disruptions which are beyond its control, resulting in pockets of fuel shortages in some service stations.

The association’s chairperson Happy Jere said this in reaction to Business News spot-checks, which show that some retailers are facing supply challenges, with some fuel stations’ stocks depleted.

He, however, ruled out hoarding of the commodity as the main cause of erratic supplies.

Said Jere: “The reason we are out of stock in most filling stations is because there are supply disruptions, but it is not my duty to explain why. The only thing I can say is that it may not be correct to say that we are hoarding fuel.

“I can challenge any of your audience to go and dip the tanks of any filling station of their choice to verify this if the meaning of hoarding is us keeping fuel and tell customers we are out of stock yet we have it in our tanks.”

National Oil Company of Malawi (Nocma) spokesperson Chisomo Mwamadi said in an interview on Monday that they continue importing fuel and releasing one million litres a day from the strategic fuel reserves to all oil marketing companies for distribution.

He said: “The country is, therefore, fuel secure. It is important to note that once the product has left the Nocma Strategic Fuel Reserves depot, it becomes the responsibility of the individual oil marketing company to put all the necessary logistical arrangements to distribute the fuel to all their filling stations.”

In a statement posted on Facebook dated July 19, Malawi Revenue Authority (Mera) said this year, Malawi has been experiencing occasional fuel supply interruptions emanating from logistical and operational challenges facing fuel importers.

The regulatory said the setbacks include foreign exchange challenges and tropical storms’ damage to fuel routes.

Reads the statement in part: “Despite these challenges, the country receives substantial volumes of fuel on a daily basis.

“Licensed importers and all stakeholders in the fuel supply chain remain committed to minimising stockouts and ensuring continuity of supply.”

But Consumers Association of Malawi executive director John Kapito said there are growing fears among consumers on the continued availability of the commodity on the market.

In June, Mera adjusted petrol prices by 44.92 percent to K1 999 from K1 380 per litre, diesel by 30.61 percent to K1 920 from K1 470 per litre while paraffin was adjusted by 29.29 percent to K1 236 from K956 per litre.

When it adjusted the price, Mera also introduced finance charges at K16.72 per litre to cover importers’ costs, a loss recovery charge of K72.35 per litre to collect importation losses that have accumulated due to the increasing free-on-board prices on the world market.