President Lazarus Chakwera has announced plans to transition Malawi’s fuel importation mechanism from the open tender strategy to the government-to-government (G2G) approach.
This move aims to address the country’s fuel scarcity challenges, which have been exacerbated by the National Oil Company of Malawi (NOCMA) and Petroleum Importers Limited (PIL) failing to secure sufficient foreign currency for fuel imports.
Malawi has been experiencing acute fuel shortages, which have had a ripple effect on the economy. The country’s fuel scarcity woes are attributed to various factors, including foreign currency shortages and market disruptions.
The G2G fuel purchase mechanism involves direct negotiations between governments for the purchase and supply of fuel, bypassing private companies and intermediaries.
This approach aims to ensure a steady fuel supply, reduce costs, and mitigate market disruptions and speculative pricing.
Speaking during the media address on Wednesday at Palace in Lilongwe, Chakwera, instituted a special committee to oversee the transition to the G2G fuel purchase mechanism.
The committee comprises the Minister of Energy and Mining, Minister of Finance, Minister of Trade, Minister of Justice, and other stakeholders in the energy sector.
The adoption of the G2G fuel purchase mechanism is expected to bring several benefits to Malawi, including direct negotiations between governments will ensure a consistent fuel supply, reducing the likelihood of shortages.
He said the G2G approach will enable Malawi to negotiate better prices for fuel, reducing the financial burden on the country.
