NOCMA’ assertion that fuel is cheaper in Malawi attracts public wrath

* Malawi can have the cheapest of everything but the people will still suffer

* Because they can hardly make enough money to buy the cheapest of things

* They compare with other countries where a domestic worker is getting almost K150,000

By Duncan Mlanjira

In defending the astronomic fuel price increase, National Oil Company of Malawi (NOCMA) deputy chief executive officer, Helen Buluma alluded that the prices are cheaper in Malawi, saying petrol was supposed to be at K3,500 per litre, than the pegged K1,999.

Buluma is quoted by the media as saying prices of fuel on the international market keep increasing on daily basis but NOCMA cushions it by covering the difference between the actual price of fuel and the prices set by Malawi Energy Regulatory Authority (MERA).

A report by Malawi24.com quoted Buluma as saying NOCMA has spent K68 billion in covering the difference over the past three months, saying MERA’s decision to hike petrol price — from K1,380 per litre to K1,999; diesel from K1,470 per litre to K1,920 and paraffin from K956 got hiked to K1,236 — was a relief to NOCMA since part of the difference it was covering has been reduced.

She, however, is quoted as saying prices on the international market will continue to increase and the recent price hike is not enough while attributing the Ukraine-Russian war as “been a major contributor of fuel hike by twice the price we had towards the end of last year.

“As such, we can only import from the Gulf region which is already on high demand due to European competition,” she was quoted as saying.

Her assertion that fuel is cheaper in the country attracted the wrath of the public, to which David Mvula responded on the comment column of Malawi24.com, saying: “Even now we still have clueless people who think saying ‘this or that is cheaper in Malawi compared to other places means anything’.

“Malawi can have the cheapest of everything but the people will still suffer because they can hardly make enough money to buy the cheapest of things.

“If anything aMalawi ndife anthu opilila osati zibwana (Malawians endure a lot of hardship) — how many times have people sliced and diced their budgets just to survive without any salary increases or new business opportunities.

“Some of these people don’t really understand the challenges that people are going through. We are far from comparing ourselves with any global situation but now we see why nothing can change for the better. Anthufe, we seem to be seeing two very different countries when we look at Malawi.”

Christopher Gunya was of the opinion that NOCMA shouldn’t be so worried that they had spent the K68 billion to cushion the prices, saying “it’s their responsibility to control the prices”.

“They hold those positions because they were trusted that they have the expertise to do so. How can she compare Malawi with other countries when what majority of Malawians earn on a month is equivalent to what people from other countries earn on a week or even on a day?”

Patrick Sean Jhala said Buluma should not compare Malawi with other countries “when our living standard are worse than those”, adding that “the lowest minimum wage in Malawi for someone working for [Malawians of Asian original] is K25,000”.

“Normal [travel cost] for someone living in Area 25 [in Lilongwe is K1,200…do the math. And you are here lecturing pointless things — sugar coating the situation really?”

Leonard Mahowe agreed with Jhala, saying technocrats usually “compare with other countries where a domestic worker is getting almost K150,000” — giving an example of South Africa, where minimum salary for a domestic worker is reported to be R4,000, an equivalent of more than K200,000.

“Moreover, they have the advantage of getting a job, unlike here in Malawi.”

Robert Mwanja said much as people might agree with NOCMA on the global price of oil, “out there they would always increase salaries at an equivalent to cushion inflation” but in Malawi it’s the same salary even after the devaluation of the currency that’s leading to skyrocketing price increase of essential commodities.

Pat Rick’s response was that people in the countries that Buluma was comparing with “receive good salary packages [and that] they can afford go to work using trains and other cheap means of transport”.

The arguments raged on with Cathy Gama saying “fuel can be cheaper in Malawi, yes but the fact that a high percentage of Malawians are very poor, there is need to do something about it”.

She alluded that technocrats who make the comparisons are usually provided with fat salaries, receive free fuels and their companies pay for their children’s school fees in expensive institutions.

Brennan PetersonWood was incredulous at the assertion that NOCMA was losing the billions to cushion the fuel prices, saying: “How can a government service lose money? Does MDF say they lose money?

“You are a government service not a private profit seeking company. The money you are ‘losing’ is already Malawians’ tax dollars, not your own money and it’s meant to be spent.”

To which Thom Maganga agreed, censuring NOCMA that they shouldn’t be saying they are “losing money as if it’s [theirs]. Are you a profit making entity or you feed on our taxes? You are saying you are losing money — what do you think you will use the money for if you save it? Will you take it to heaven? [Isn’t that our taxes?”

Calisto Mwepetha suggested that maybe “Buluma knows that the huge chunk [of the money spent by NOCMA] goes to transportation and that if the commodity is transported by rail, Malawians will be buying at a cheaper price, but the problem is politicians who own the tankers”.

Another school of thought, who asked not to be mentioned, took note that NOCMA has made the loss of K68 billion yet Petroleum Importers Limited (PIL) indicated that their loss is K14 billion — which is a  staggering difference of K54 billion.

Our source indicated that the two entities are currently importing at 50/50 import sharing — thus their losses should have been the same.

He also disclosed that NOCMA is lobbying Parliament to make it into law that it should get a bigger share of exporting at 90% yet “PIL has better and cheaper procurement deals”.

“Why should poor Malawians suffer due to NOCMA’s bad and expensive tendency? Who’s fooling who?” said our source, while questioning why “NOCMA is so obsessed at competing with PIL when the two entities can work together”.

“Why is NOCMA against PIL when it has better and cheaper fuel procurement deals?” said our source.