Fuel crisis enters 3rd week with no hope: Petroleum retail hit hard as their capacity downsizes to 30%

Malawi is grappling with a severe fuel crisis that has persisted for three weeks, drastically reducing petroleum retailers’ operating capacity to just 30 percent. This acute scarcity has left many service stations, both in urban and rural areas, barely operational, as they are receiving fuel deliveries only once a week on average.

Fuel Crisis has hit Malawi

Industry insiders from the Petroleum Retailers Association of Malawi (PRAM) report that while cities like Blantyre, Lilongwe, and Mzuzu are receiving limited fuel supplies, stations in districts and towns such as Zomba City are left nearly dry. Happy Jere, PRAM chairperson, noted, “Filling stations in cities are only selling about 30 percent of normal fuel amounts, but those outside the cities are mostly idle yet still have to pay bills.”

Impact on Retailers and Consumers

The impact of this crisis is profound. Operators are struggling to cover fixed costs, including staff salaries and utility bills, as their sales plummet. Stain Singo, an operator at TotalEnergies Malawi’s Kanjedza Service Station, shared his concerns, revealing that his station received only 9,000 litres of petrol last week—half of what is typically delivered. “This fuel lasted only a day,” he lamented.

The situation has led to long queues at filling stations, causing significant traffic congestion and inconveniencing motorists. Spot checks across various locations, including Mchinji, Lilongwe, Zomba, and Blantyre, revealed that many service stations were still awaiting deliveries, exacerbating public frustration.

Public transport providers have also felt the strain, with fares rising sharply to cover losses from long waits for fuel. In Blantyre, fares on the Limbe-Blantyre route have doubled, reflecting the increasing costs faced by commuters.

Government and Industry Response

In an effort to stabilize the situation, the government has allocated $21.5 million (approximately K37.6 billion) to fuel importers to facilitate the procurement of supplies. Additionally, plans are in place to load 26.9 million litres of fuel to alleviate the ongoing shortages. However, sources within the petroleum industry have cautioned that with strategic reserves depleted, the country faces significant challenges in restoring stable fuel supplies.

“We are in a hand-to-mouth situation,” one industry source revealed. “With limited reserves, any deliveries go straight to filling stations and consumers, making it difficult to build up the necessary stocks.”

Long-Term Implications

The crisis stems from a combination of factors, including foreign exchange shortages that have left Malawi with reserves sufficient for only a month of imports. Coaxley Kamange, secretary general of the minibus owners’ association, emphasized the need for the government to ensure year-round fuel availability to avoid future shortages.

As the fuel crisis continues, stakeholders are calling for immediate government intervention to stabilize supply and protect consumers from rising costs and uncertainty. With the situation evolving, both the Malawi Energy Regulatory Authority (MERA) and the National Oil Company of Malawi (NOCMA) are yet to provide comprehensive updates, leaving many in the dark about the future of fuel availability in the country.

In conclusion, Malawi’s fuel crisis highlights the critical need for sustainable solutions to ensure reliable fuel access and stabilize the economy, as both consumers and retailers bear the brunt of this ongoing challenge.

 

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