‘Feasibility studies and procurement processes underway to expand fuel storage capacity from 60 million litres to 120 million’

* Pledges Chakwera in his State of the Nation Address during the opening of the 2025-2026 budget session of Parliament

* NOCMA manages 25 million litres reservoir at Blantyre’s Matindi depot; a further 25 million litres at Kanengo in Lilongwe and 10 million in Mzuzu

By Duncan Mlanjira

To enhance fuel supply security, the Government is expanding fuel storage capacity from 60 million litres to 120 million, pledged President Lazarus Chakwera in his State of the Nation Address (SONA) on Friday, during the opening of the 2025-2026 budget session of Parliament.

The President announced that feasibility studies and procurement processes for the new reserves to be set up in Blantyre, Lilongwe and Mzuzu are already underway.

Government wholly-owned National Oil Company of Malawi (NOCMA) Limited manages 25 million litres reservoir at Blantyre’s Matindi depot; a further 25 million litres at Kanengo in Lilongwe and 10 million in Mzuzu.

The fuel supply scarcity challenges which the country faced in past few months has made the government rethink its strategy in the importation of the commodity, by among others through government-to-government (G-to-G) arrangement.

Motorists across Malawi are now refueling without challenges following the successful haulage of fuel from Tanga Port in Tanzania through the G-to-G arrangement, whose Coordinating Committee chairperson is Minister of Energy, Ibrahim Matola.

Meanwhile, during the Boma Likutinji media platform, Minister Matola reaffirmed Government’s commitment to ensuring a stable and uninterrupted fuel supply across the country as he highlighted ongoing efforts by his Ministry and NOCMA to maintain fuel security.

Matola assured Malawians that the Government is exploring multiple import routes while strengthening existing ones to ensure a reliable fuel supply.

He is quoted on the official Government Facebook page as saying NOCMA has swiftly implemented key resolutions from a high-level meeting which was chaired by Vice-President Michael Usi.

The meeting by Usi was also attended by Malawi Energy Regulatory Authority (MERA), Public Procurement & Disposal of Assets Authority (PPDA) and other stakeholders, from which the Vice-President Usi reported that the discussions were fruitful and that the suggested solutions and their implementation to end the fuel supply challenges were effective.

Thus Minister Matola told the public during the Boma Likutinji session this last week that “NOCMA is at the forefront of ensuring Malawi’s fuel supply remains stable” and that they all “are working tirelessly to implement strategies that safeguard our energy security, including optimising transportation networks and storage facilities”.

Also present was Minister of Transport, Jacob Hara, who announced that his Ministry has intensified efforts to rehabilitate Malawi’s railway infrastructure to enhance fuel transportation efficiency.

He revealed that the Marka-Bangula railway project will soon extend to Nsanje Boma, featuring fully operational trans-shipment facilities for fuel transportation.

“Rail transport is a game-changer in reducing logistics costs,” he is quoted as saying. “By expanding the Marka-Bangula railway line, we are creating a more efficient and cost-effective fuel supply system that will benefit all Malawians.”

In his SONA, in which he highlighted development projects district-by-district that his administration had initiated in the past four years, President Chakwera also talked of the revival of the railway system in Nsanje, which brought cargo from Mozambique in September 2024 for the first time in 41 years.

The President presided over the first consignment of fuel in Nsanje in September, where he emphasised that on the hierarchy of efficient and effective transportation of fuel into Malawi, rail transportation is ranked first — adding that at the current transportation rates, transportation of fuel by rail is approximately 40% cheaper than by road.

The Beira-Marka route was last utilised in 1983 — a break of 41 years due to the loss of Dona Ana Bridge between the towns of Vila de Sena and Mutarara in Mozambique, that forced Malawi to use longer routes.

Going forward, President Chakwera told Parliament, and the nation, that the import and export corridor that his administration “will create through Nsanje will make prices of goods go down in the long term, as well as bring in forex through the export of our own products through the railway track into Mozambique there”.

“For this reason, Nsanje will become a major player in our economy over the next 10 years, bringing everything from fuel to fertilizers, thus requiring the construction of proper storage facilities of international standard, among other support services.”

The Boma Likutinji program, hosted by Minister of Information, Moses Kunkuyu, serves as a platform to update Malawians on the Government’s developmental initiatives, and it was also attended by NOCMA Chief Executive Officer, Clement Kanyama, who reaffirmed the company’s commitment to ensuring sustainable and secure fuel supply solutions for the nation.

He maintained that NOCMA remains dedicated to working alongside the Government and stakeholders to implement strategic energy initiatives that drive economic growth and national development.

On February 1, NOCMA announced the completion of a system upgrade by Tanzania Revenue Authority (TRA), which is expected to significantly improve the haulage of fuel from Tanzania to Malawi.

On its website, NOCMA quoted its senior supplies & distribution officer, Jacob Sesani, as saying the upgrade as a step in the right direction in ensuring a steady and efficient fuel supply chain.

He added that the TRA’s system enhancement, which had taken longer than initially anticipated, had resulted in a backlog of fuel tankers on the Tanzanian side, disrupting supply to Malawi.

“With the system upgrade now completed, we have already seen a significant increase in the number of tankers crossing the border into Malawi,” Sesani was quoted from Dar es Salaam, Tanzania. “This positive trend is expected to continue, offering much-needed relief after a period of constrained fuel supply in the country.”

Meanwhile, NOCMA assures that it has “intensified engagement with key stakeholders across the fuel supply chain to expedite processes involved in fuel handling and distribution”.

“These efforts aim to ensure the timely and efficient delivery of fuel to Malawi, mitigating any future disruptions,” says NOCMA on its website, after months of fuel shortages that affected businesses, transport operations and daily activities.

As the appointed agent managing the G-to-G arrangement, headed by  Minister Matola, NOCMA has been at the forefront of addressing the fuel supply challenges, ensuring that adequate petroleum products reach the country.

In response to the shortages, NOCMA intensified efforts to secure alternative fuel import routes, leading to the commencement of fuel transportation from Tanga Port.

As part of its long-term strategy, NOCMA pledges that it will continue “to explore additional supply routes and enhance fuel storage capacity to prevent future shortages”.

“The company remains dedicated to ensuring that Malawi’s fuel supply chain remains robust and reliable, supporting economic activities and the livelihoods of Malawians.

“NOCMA assures the public that it will keep working closely with stakeholders to sustain the steady flow of petroleum products into the country,” says the company while assuring motorists and business players that they “can now operate with confidence, knowing that fuel shortages are being actively addressed”.