Courtesy |
BLANTYRE, Malawi
Fuel stations in Malawi's
economic capital, Blantyre, are running on empty after a fresh, nationwide fuel
shortage this week.
Long lines of motorists are
waiting for hours, sometimes overnight, in hopes of fueling their vehicles,
while public transport fares have doubled. Malawi's energy regulator says the
country has depleted its fuel reserves, largely due to a lack of foreign currency.
The problem became apparent
July 16 when motorists started to scramble for gasoline, though diesel still
was readily available.
Now, both products have run
out. Long lines, some as long as a kilometer from a pump station, are common,
attracting a lot of speculation from motorists such as Labani Chirwa.
Chirwa has heard there are
plans to hike the prices of fuel, leaving many thinking some filling stations
are deliberately hoarding the fuel to make huge profits from the old stock.
The government has rejected that speculation.
This is the first time since
March the fuel supply situation has reached critical levels.
The fuel scarcity has pushed
operators of public transportation vehicles to almost double their fares.
However, the operators say
despite the increase in fares they are not making any profits because they are
spending a day or two lining up for fuel without doing any business.
The fuel scarcity is a big
blow because many people and their families rely on minibuses, said Calisto
Kambani, who runs a minibus business in Blantyre.
Malawi has been facing
recurring fuel shortages since August 2022, largely because the country lacks
enough foreign currency. The Reserve Bank of Malawi said in June that the
government's foreign exchange reserves were not enough to last a month.
Henry Kachaje, chief executive
officer for the Malawi Energy Regulatory Authority, told reporters Tuesday that
Malawi cannot keep up with rising international prices for petroleum products.
"Previously, the country
used to require an average of about $300 million worth of product, but when the
prices of petroleum products on the market rose, as a country we needed almost
$600 million worth of a product. Unfortunately, our export base did not double
as the import bill doubled," he said.
Kachaje said the energy
regulator is working with fuel suppliers to minimize the shortages.
"One way is to engage
suppliers that are willing to give product to Malawi in Malawi Kwacha [local
currency]," he said, "so we use that as a measure to supply to the
main market on a daily basis while we allow our national importer, the National
Oil Company of Malawi, to focus on restocking the strategic reserves."
Kachaje said if all works
according to plan, the fuel strategic reserve in Malawi will be restocked by
the end of August.
The current fuel shortage is
temporary, he added, projecting it will be resolved within three days.
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