Thursday, June 23, 2011

Malawi Fuel Shortages

Returning from Lilongwe with Gerald last week.  The bus comes to a complete halt and pulls over into the brush along the road.  Why?
Men sit huddled under a tree with a baby softly crying in the distance.  Passengers grow restless.  The driver steps out onto the road and converses with the men.  I wonder what is going on.  
A boy comes out of the wood with a large yellow container attached to the back of his bicycle.  The driver hands the men a wad of cash.  Out comes a funnel.  What is going on…fuel sales on the black market!


Recently Malawi has been gripped by fuel shortages that have halted the operations of different sectors of the economy.  This is evidence by the scarcity of diesel, petrol, and paraffin.  
The few filling stations with diesel and petrol are so crowded it takes hours before one gets their chance at the pump.  Apart from transportation, the problem has also affected operations of communication sectors and service sectors.  When there is a blackout of electricity, Malawi’s network providers, Zain and TNM use fuel for operation of their transformer system. Due to shortage of fuel some areas of the country are experiencing communication problems when there is a blackout. 
The predominant reason Malawi is having this problem is due to a shortage of foreign exchange to buy fuel energy imported through neighboring countries.  Also, importers are demanding cash payments because Petroleum Importers Ltd. hasn’t repaid all debts from deliveries made on credit!
In an effort to combat this fuel crisis the Malawi Government through Malawi Energy Regulatory Authority (MERA), has directed fuel service stations to ration fuel to clients so that there is optimum distribution of the commodity. 
Hopefully things get better in the coming weeks!

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