CDEDI blames state house for artificial fuel shortages

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Namiwa

The Centre for Democracy and Economic Development Initiatives (CDEDI) has expressed deep concern over Malawi’s ongoing fuel shortages, alleging that powerful figures at State House are artificially creating the crisis.

According to CDEDI Executive Director Sylvester Namiwa, these figures are manipulating payments through the Reserve Bank of Malawi (RBM) to frustrate suppliers, with the country now owing $72 million, exceeding the agreed $40 million credit threshold.

He said this forces suppliers to halt deliveries, resulting in long fuel queues across the country. Meanwhile, other suppliers with contracts dating back to 2021 have ample fuel volumes ready for delivery but are being prevented by forex restrictions, and he has demanded action.

“CDEDI calls upon Malawians to demand swift action on the following: A forensic audit of NOCMA, covering transactions from 2018 to the present. Immediate progress updates on the G2G arrangement, with clear timelines, or Energy Minister Ibrahim Matola must step down.

The dissolution of President Chakwera’s fuel committees within seven days, since NOCMA has been appointed to handle procurement. The launch of a national “Fuel Prices Must Fall” campaign, given the dramatically lower fuel rates secured in Dubai,” said Namiwa.

The organisation also warns against reviving the Gulf Energy deal, citing better offers secured in Dubai. Recent fuel procurement deals secured in Dubai offer significantly lower premiums compared to neighbouring countries.

“The country has been sourcing fuel from Adax at $175 per metric ton via OTS. Worse still, Malawi received 51 million litres of fuel on January 15, 2025, from Gulf Energy Limited, priced at an alarming $195 per metric ton for petrol and $188 for diesel, nearly triple the rates negotiated through G2G,” he added.

CDEDI has threatened to mobilise peaceful protests should the Malawi government fail to meet their demands. 

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