Deputy Chief Executive Officer for National Oil company of Malawi (NOCMA) Helen Buluma is anticipating lower landing costs and reduced fuel pump prices if transporting of fuel is done using rail.
Currently, works to connect Blantyre Strategic Fuel Reserve (SFR) to rail from NACALA is in progress and 92% of the work has been done according to NOCMA.
This is also coming after Commissioning of Lilongwe Strategic Fuel Reserve to the rail from NACALA.
Speaking to MIJ Online, Buluma said connection of the rail line has been completed and awaits fixing of a rail between Mchinji and Salima to bring fuel from Nacala direct into NOCMA’s tanks at Kanengo, Lilongwe.
According to Buluma, the rail route does not mean replacing the role of fuel Transporters, as it will be complimenting the bringing of fuel into the country.
“We are in a transition and a transitional process does not mean that we push out fuel transporters, we have agreed with the transporters that they will continue transporting fuel, we have given them a share of 86.3% and 13.7% will be brought by either foreign transporters or will come through rail” said Buluma.
Buluma however emphasized that there is need to balance the fact that there are fuel transporters that depend on the importations interms of business as well as the fact that the country needs to bring fuel through rail so to have lower landing costs that can support government in ensuring that the fuel prices are reduced.
Natural resources Committee of Parliament through its Chairperson Werani Chilenga, months ago also recommended use of rail saying this would lower fuel pump prices.