The Center for Democracy and Economic Development Initiative (CDEDI) executive director Sylvester Namiwa has called on the authorities to revert to the Government to Government (G2G) fuel procurement system.
Last year in February, Namiwa challenged government to abandon the system, saying it was illegal as the mandate to bring fuel into the country rests with the Malawi Energy Regulatory Authority (MERA) and National Oil Company of Malawi (NOCMA) not politicians.
During a press briefing CDEDI held jointly with the Human Rights Defenders Coalition (HRDC) in Lilongwe on Thursday, Namiwa said the G2G fuel procurement will help addressing fuel challenges in the country.
This follows recent fuel price increase whereby Petrol price has risen from K4,965 per litre to K6,672, while diesel increased from K4,945 to K6,687 per litre.
During the opening of the 52nd Session of Parliament in October last year, President Peter Mutharika cancelled the G2G fuel procurement deal, reverting to the old Open Tender Fuel Procurement System to restore transparency and efficiency in the sector.
He 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.
