Petroleum Importers Limited secures 12 million litres of petrol, diesel

By Benadetta Chiwanda Mia:

Petroleum Importers Limited (PIL), a consortium of private fuel importers, has procured 12 million litres of fuel, which is expected to help stabilise fuel.

PIL General Manager Martin Msimuko said the procurement follows a $10 million forex allocation to the consortium facilitated by the Reserve Bank of Malawi.

“We started bringing fuel last Wednesday, of which 8 million litres is petrol and 4 million litres is diesel. So far 1.2 million litres of petrol is already delivered in the country and we expect that for the next one week, we will continue to bring the fuel,” Msimuko said

However, Msimuko highlighted challenges faced by suppliers in meeting their 50 percent importation requirement due to persistent forex shortages.

He said PIL needs approximately $20 million per month for fuel imports, but inconsistent forex availability has hampered efforts.

“Without access to foreign exchange, we cannot import fuel reliably. We are urging continued support from banks to access the necessary forex,” he stated.

But Minister of Energy Ibrahim Matola assured the private sector of the government’s commitment to supporting fuel procurement efforts.

“Both the government and the Reserve Bank of Malawi are working tirelessly to ensure forex availability for our private sector suppliers, complementing governmental initiatives,” Matola said.

The government had previously announced reaching out to five Gulf countries to explore a government-to-government (G2G) fuel procurement arrangement.

Matola mentioned that negotiations are nearing completion, with expectations for a second consignment of fuel under the G2G framework.

“The process is advancing, and we are close to finalizing negotiations. We anticipate receiving a second consignment of fuel, with volumes within the same ranges as the first consignment,” he added.

Earlier, through the United Arab Emirates G2G importation agreement, the Kenyan government facilitated the procurement of 40,000 tons (approximately 51.5 million liters) of diesel and petrol from Abu Dhabi for Malawi.