The National Oil Company of Malawi (NOCMA) has defended its role in importing fuel, as criticism mounts over rising fuel prices and procurement practices.
The company’s response comes amid growing criticism over fuel prices and procurement practices, with NOCMA insisting that its operations are guided by the law and aimed at ensuring a steady supply of fuel across the country.
On Thursday, at a press briefing in Blantyre, the Centre for Democracy and Economic Development Initiatives (CDEDI) Executive Director Sylvester Namiwa alleged that NOCMA had drifted from its core mandate of managing strategic fuel reserves to buying and selling of the commodity.
“Currently, under the Office of the President and Cabinet (OPC), with the Chief Secretary as the board chairperson, has turned itself into an oil marketing company,” said Namiwa.
Namiwa also questioned NOCMA’s use of foreign transporters and service providers, saying the practice increases pressure on Malawi’s foreign currency reserves while limiting opportunities for local firms.
Namiwa further called for reforms in fuel logistics, including the introduction of rail and pipeline transport systems, arguing that such measures could reduce landing costs and ultimately lower fuel prices for consumers.
However, NOCMA has countered the claims saying its role is clearly defined under the Liquid Fuels and Gas (Production and Supply) (Amendment) Act, 2025, which allows state-owned entities designated as agents of government to import fuel.
The organization further said as a majority government-owned company, it operates within a legal framework that authorizes it to manage fuel importation.
The company further cited the Liquid Fuels and Gas (Production and Supply) Regulations, 2017, which permit government to directly import and transport petroleum products to maintain national fuel stock levels.
In its defence, NOCMA maintained that it follows an Open Tender System in sourcing fuel and works with established international suppliers, rejecting suggestions that it relies on informal or unverified channels.
The company also emphasized that Malawian transporters remain central to its logistics operations and said recent fuel price adjustments were driven by accumulated under-recoveries exceeding K1.3 trillion, while reaffirming its commitment to maintaining stable fuel supplies and engaging stakeholders in the sector.
