Petroleum Importers Limited (PIL) has disclosed that it will sign an agreement with a fuel supplier who is willing to accept local currency payment.
PIL General Manager Martin Msimuko however did not disclose the name of the company until the signing ceremony for the purchase of 35 million litres of fuel materializes in a one-time arrangement any day this week.
“If all goes well the deal will be signed this week, we are talking of 15 million litres of diesel and 20 million litres of petrol. This is a once-off arrangement for now, to be repeated if successful,” said Msimuko.
Malawi Energy Regulatory Authority (MERA) Chief Executive Officer (CEO), Henry Kachaje confirmed to the local media that he is aware of the PIL arrangement.
“The last time we followed up, they had one who had seriously indicated a willingness to pursue and we gave them a go-ahead to negotiate and do some due diligence,” said Kachaje.
Minister of Information and Digitization Moses Kunkuyu, was also hopeful of the deal when he addressed the press in Lilongwe on the fuel situation in the country last week.
One Economist Milward Tobias was also quoted by the local press supporting the arrangement, saying it would be a huge relief especially as the country does not have enough foreign exchange supply.
The country has been experiencing erratic fuel supply caused by shortage of forex in the country.
To mitigate the fuel supply challenges, PIL has been trying several means of reversing the problem, including the use of railways to transport the product in large volumes at once.