Malawi: Continued fuel smuggling irks Mejn

Incessant smuggling of petroleum products to neighbouring countries has worried the Malawi Economic Justice Network (Mejn) which has sternly warned that if left unchecked, the situation would potentially retard daily economic activities in the country.

"We would like to express our concern on the fuel smuggling business due to low fuel prices in the country. It has come to our knowledge that people are willing to accumulate profits by exporting fuel illegally to the foreign markets in the neighbouring countries.

"We have evidence of this conduct and that fuel consumption in the country is much higher in the borders as compared to other areas," said Kumbatira Mejn’s Executive Director in an interview Wednesday with Economic Report.

Currently, Malawi has relatively low fuel prices in comparison to other bordering countries such as Mozambique, Tanzania and Zimbabwe .

On June 15, the Malawi Energy Regulatory Authority (Mera) implemented a 25 percent fuel price hike but economic commentators described the hike as long overdue and that still the local pump was under-priced.

"For some time now, it has come to our knowledge that people are taking advantage of this to fulfil their selfish desires by exporting fuel outside Malawi without following proper cross border procedures. Mejn fears that this may be one of the contributing factors to fuel scarcity in the nation which will setback daily economic activities." said Kumbatira.

Since the recent fuel hike, fuel scarcity has been gripping the country a thing that some players continue to speculate that another fuel price hike is imminent.

The Mejn boss appeals to all the stakeholders to take proper actions in addressing the issue ‘before more damage is done.’

"The general public and all stakeholders should desist from this malpractice because in the long term, it will affect our country’s functions that promote our economic standards," said Kumbatira.

For some years, Malawi has been a preferred re-fuelling point for all trans-boundary truckers because of the prevailing lower prices.

Unscrupulous businessmen from both sides of the boarders continue to cash in on the price differentials by trafficking fuel from Malawi in jerry-cans and drums for resale across the boarders thereby creating shortages on the local market.

Recently, Minster of Energy and Mines Ted Kalebe told journalists in Lilongwe that among other collecting measures to curb the current fuel supply challenges, government is working with a company from Qatar to develop a 60-day strategic fuel reserve facility.