Ray of hope on the fuel crisis – Capital Radio Malawi
13 November, 2024

Kunkuyu (c): Situation will stabilize soon

The government has announced that the current fuel crisis is expected to ease by the end of this week, offering hope to millions of Malawians affected by fuel shortages over the past ten days.

Speaking to journalists in Lilongwe, Minister of Information Moses Kunkuyu explained that some of the key issues contributing to the fuel shortage—particularly the scarcity of foreign currency—have been partially resolved.

“One of the main challenges was securing enough foreign currency to pay fuel suppliers, who had suspended deliveries. The government owed large sums of money, which caused a supply halt, but we have now made partial payments,” Kunkuyu said.

He added that foreign currency has been allocated to the National Oil Company of Malawi (NOCMA) and Petroleum Importers Limited (PIL), allowing fuel shipments to be released for Malawi.

“Fuel is already en route, and within the next few days, we expect supply levels to increase significantly,” Kunkuyu assured.

The government has also outlined long-term measures to prevent a recurrence of such shortages. According to Kunkuyu, these plans aim to stabilize fuel supply chains and address underlying economic issues.

Malawi Energy Regulatory Authority (MERA) Chief Executive Officer Henry Kachaje highlighted the root causes of the foreign exchange crisis.

“The demand for foreign currency is very high, not just for fuel but also for other critical sectors like healthcare. Additionally, the importation of second-hand clothing ranks among the top five forex consumers,” Kachaje said.

Kachaje expressed optimism, noting that the government has secured funding from the Arab Bank for Economic Development in Africa (BADEA) to bolster foreign reserves. “If this flow of forex remains steady, we are confident that the fuel shortage will be resolved by next week,” he said.

Malawi has faced fuel crises before, with a similar shortage in 2022 that lasted over a month. At the time, it severely disrupted transport, commerce, and daily life across the country.

The current crisis has already impacted businesses and public services, raising concerns about the country’s economic stability.

A week ago we carried out a looming fuel crisis that is now forcing people to travel long distances and spend hours in queues in search of the commodity.

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