Erratic fuel chokes business operations

Erratic availability of fuel, especially diesel is negatively impacting on economic activities with transporters failing to meet delivery deadlines and fuel service stations operating at reduced capacity despite continuing to incur overhead costs. In the past week, the country has experienced irregular availability of diesel and petrol in fuel service stations across the country. Malawi Energy Regulatory Authority (Mera) last week acknowledged the stockouts and hinted that the situation would normalise by last Friday.

However, to date availability remains erratic. Transporters Association of Malawi director Frank Banda in an interview yesterday said erratic supply has affected haulage of commodities such as agricultural produce and fertiliser with some trucks stuck due to diesel shortage. “This has put us at risk of making losses because we only generate income when our vehicles are on the move,” he said.

Banda said the situation follows recent disruptions in Mozambique where some trucks were left stranded for more than six weeks without loading fuel, pushing up operating costs. On his part, Truck Drivers Union of Malawi vice-president Francis Mkandawire said the situation is forcing drivers to delay trips as long-haul journeys require substantial fuel volumes. He said: “For instance, I was in Karonga and expected to leave on Thursday last week but only left on Sunday because I could not access enough diesel.” Fuel Retailers Association chairperson Happy Jere said reduced fuel allocations have led to declining sales while operating costs remain unchanged.

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He said: “Some fuel service stations in urban areas are operating at 60 percent while others outside towns are at 20 percent yet they are still expected to pay workers.” A taxi operator, Amini Afiki, who operates on the Mangochi-Monkey Bay Road in Mangochi District, said yesterday that he was forced to buy petrol on the parallel market at K6 500 per litre, above the official price of K4 965 per litre. “I rely on this business to support my family so I hope the situation improves soon,” he said. In a separate interview, Malawi Union of Small and Medium Enterprises president James Chiutsi said while the immediate impact remains minimal, prolonged shortages could push up operating costs for many businesses.

Mera public relations and consumer affairs manager Fitina Khonje said the industry was “making efforts to stabilise the flow of fuel supplies”. She said consolidated figures on fuel inflows were not immediately available.

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