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Mera warns black market fuel dealers

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Black market fuel dealers affect filling station sales
Black market fuel dealers affect filling station sales

The Malawi Energy Regulatory Authority (Mera) says it has engaged the Malawi Police Service and the Lilongwe City Council to remove black market fuel merchants who have besieged some filling stations in the city.

The fuel merchants, who normally access the precious commodity from Mozambique, have of late been on the increase especially at Petroda Salima Turn Off in Kanengo, Biwi Triangle and at Walkers Total Filling Station at Biwi.

A five litre can of diesel from the traders cost K3 500 when the pump price is K4 380, forcing motorists, especially minibus drivers and truck drivers to buy from the vendors.

Said acting chief executive officer for Mera, Elias Hausi: “We have formally received two complaints from Petroda and Total filling stations owned by Walkers Investments at Biwi that vendors have besieged their stations. We agree that this problem is huge especially at Biwi and we are engaging the police and the city council to make sure that we sort out this problem because one day there could be a huge fire accident.”

Hausi said the two companies have complained that they are making fewer sales because most vehicle owners are getting their fuel on the black market.

Petroda Malawi Personnel Manager, Twaibu Abbas, concurred with Hausi that sales at the Biwi and Kanengo Station have gone down due to black market dealers.

“We are losing millions of kwacha, approximately K15 million per day and this is a lot of money. The filling stations at Biwi and at Kanengo are strategically positioned and we could be making huge sales, but that is not the case. In fact, we have reduced the price of diesel at our Biwi Filling Station just to counter the black traders.”

“These traders do not even pay taxes to government and to our surprise they are on the increase,so, we are wondering why Mera is not taking action,” said Abbas.

One of the traders who only identified himself as Frank Phiri said it will be very sad if Mera chases the black market traders because selling fuel is their only source of livelihood.

“We are not thieves; we get this product through normal channels in Mozambique and government must protect us as well. If they throw us out of business, where are we going to get our food?” Wondered Phiri.

According to Phiri, there are over 50 traders are at Biwi Triangle and all of them make a huge kill from the business.

“I am building a house and some of my friends have bought cars through the same business. We only sell diesel because we know petrol is a very dangerous commodity which can cause fire anytime,” said Phiri.

Competition and Fair Trading Commission director, Charlotte Wezi Malonda , said it is difficult for her body to investigate the issue of black market fuel traders.

“Mera is the one responsible to end the problem,” she said.

A senior Police officer who asked for anonymity said both Mera and Police are responsible for ending malpractice but sometimes they fail due to limited resources.

“This country has many statutes that govern specific areas but sometimes we tend to focus on areas where our attention is urgently needed. If people are selling fuel anyhow both us and Mera are supposed to work together to sort out the problem,” said the officer.

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One Comment

  1. I always say, we need to set our prices with the following in mind, (1) covering the cost of petroleum imports, (2) meeting the local taxation, levy and industry margin requirements, (3) comparative costing with our neighbouring countries. A high price in Malawi causes illegal imports form neighbours, lowering Gov taxes, levies and industry returns, a low price in Malawi causes illegal exports, loss of forex, and shortages in Malawi. For once lets do things the right way, currently the pump price in Malawi is way above what it should be causing a black market. Kodi anthu mumawalemba ku MERA’wa mumawatenga kuti?

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