Malawi: Government says it has secured $21.5 million and earmarked it to address fuel crisis amid public frustration

In an attempt to alleviate the current fuel crisis, the Malawi government announced the allocation of US$21.5 million to fuel importers, including the National Petroleum Company of Malawi (NOCMA) and Petroleum Importers Limited (PIL).

Minister of Information and Digitization, Moses Kunkuyu, made the announcement during a press conference in Lilongwe, aimed at reassuring the nation as fuel shortages continue to affect daily life.

Kunkuyu outlined the key challenges contributing to fuel shortages, including suspension of shipments from fuel suppliers due to unsettled payments owed by NOCMA and PIL, coupled with a persistent shortage of foreign currency.

“Fuel importers were unable to secure currency to pay suppliers, leading to the suspension of loading”, he explained, highlighting that this disruption seriously affected the Strategic Fuel Reserves (SFR) and led to an increase in speculative purchases.

As part of the effort to stabilize the situation, Kunkuyu noted that the government hopes to normalize fuel supply by this weekend. Currently, 44 gasoline trucks are in transit, with 150 trucks carrying 5.7 million liters of gasoline already in transit. Additionally, 800,000 liters are being loaded, while 5.5 million liters are currently being processed in Beira and Dar es Salaam.

Despite public speculation about potential increases in fuel pump prices, Kunkuyu firmly stated that the government has no intention of increasing prices, with the aim of calming growing concerns among citizens who are already feeling the strain of economic pressure.

Clement Kanyama, CEO of NOCMA, corroborated the government’s assurances, stating: “Many gas stations will now receive the product to normalize the situation.” He expressed optimism that payments made to suppliers would facilitate a quick return to stability in fuel availability.

The announcement comes as a relief to many Malawians, who have faced significant disruption in recent weeks due to fuel shortages. The impact on citizens’ socioeconomic well-being has been substantial, affecting transport and daily activities.

Although the government’s financial injection into the fuel sector is a positive step, both experts and citizens remain cautious, calling for long-term solutions to prevent future crises. As the situation evolves, the government’s actions will be closely monitored, with public trust at stake.