LILONGWE-(MaraviPost)-Malawi’s fuel crisis is failing to die amid a lack of forex that President Lazarus Chakwera’s Tonse Alliance government will be declared bankrupt in October if the situation is not improved.
Malawi Energy Regulatory Authority (MERA) Chief Executive Officer (CEO) Henry Kachaje on Tuesday, July 18, 2023, told the local press that the country is currently operating on hand-to-mouth in terms of fuel supply and any disruption in fuel supply for a day or two would cause a fuel crisis.
Kachaje made the revelation this afternoon during an engagement meeting with the parliamentary committee on media, information, and communication.
According to Kachaje, this is the case as Malawi’s strategic reserves were depleted in December 2022 and they need about 60 million dollars to restock the reserves.
“The queues of motorists are a serious headache not only to MERA but to Malawians as well…the fuel being consumed today came in the country yesterday and what will be consumed tomorrow would have come today,” said Kachaje.
He disclosed further that Malawi has to find ways of generating forex as the shortage of the same is also affecting the supply of fuel.
However, Kachaje MERA has given the go-ahead to Petroleum Importers Limited (PIL) to sign an agreement with a supplier to supply the product of about 60 million liters in Malawi Kwacha by August end.
Each month, Malawi spends an average of US$250 million on imports. Thus, at US$197.1 million last year, annual revenue from tobacco, the country’s major foreign exchange earner, was not even enough to cover a month’s import bill.
Chakwera Tonse Alliance government is failing to meet the forex reserve cover for the last three years in power.
