We run a transparent and competitive tender every year. Through this competitive bidding, we have been able to reduce the premiums that we pay to the suppliers.
We mainly import product through the ports of Beira, Dar es Salaam and Nacala. We are committed to bringing fuel by rail and we have done this ever since we started importation of fuel. Our main port is Beira where we bring just over 50% of the fuel, we bring in the country. We bring 30% of our requirement through the port of Dar es Salaam. We are currently working with Nacala Logistics, Government, and other key stakeholders to bring more product through Nacala rail.
We remain committed to build a resilient fuel supply chain and use alternative routes to supply the country. In this regard we can use Masasa, Mabvuku and Feruka in Zimbabwe if the port of Beira is offline through adverse weather. We used the Zimbabwe route in 2019 when Beira was hit with a cyclone Idai.
We have also loaded product in Zimbabwe and bring it in the country through Zambia and Nchinji Border. The Zambian route was tested in 2016 and was found to be longer and expensive.
We are exploring the use of Ntwara port in Tanzania which is closer to Malawi and may be a cheaper alternative.
We have developed a good partnership with Nacala Logistics (CEAR/CDN) to move product by rail into Nacala...
Our importation is financed through letters of credit and standby letters of credit from Local Banks...
Over 90% of our fuel comes by road. We have a Malawian broking company (IHB) which mobilizes the ...
The fuel pricing is regulated by Malawi Energy regulatory Authority...