President Peter Mutharika has cancelled Government-to-Government (G2G) fuel procurement deal, reverting to the old Open Tender Fuel Procurement System to restore transparency and efficiency in the sector.
Speaking on Friday during the opening of the 52nd Session of Parliament in Lilongwe, Mutharika said the move will also ensure stability of fuel supply in the country.
“Mr. Speaker, Sir, we are still in a fuel crisis. Fuel queues are still with us even today. Malawians voted for us to end this crisis and we will end it.
“Therefore, Mr. Speaker Sir, in order to ensure stability of fuel supply in the country, my Administration will ensure that fuel imports consistently meet national demand. We will increase allocation of foreign exchange to match import requirements.
“Mr. Speaker, Sir, my Administration will revert to the Open Tender Fuel Procurement System to ensure fast deliveries, efficiency, transparency, and value for money, while also diversifying fuel importers to promote competition and reduce dependence on a few suppliers,” he said
National Oil Company of Malawi (NOCMA) entered into an agreement with companies in the UAE and Oman to procure fuel which it was said that it will save the country about US$100 per metric tonne compared to previous tender-based imports.
NOCMA spokesperson Raymond Likambale said the arrangement with OQ Trading of Oman and the Abu Dhabi National Oil Company (ADNOC) is more cost-effective, with diesel CIF premiums at US$77.17 per metric tonne and petrol at US$69.89, compared to US$175.71 and US$185.90 respectively under the Open Tender Fuel Procurement System.
