MERA pens Reserve bank on forex allocation to fuel importers

The Malawi Energy Regulatory Authority (MERA) has requested the Reserve Bank of Malawi to prioritize allocation of forex to licensed fuel importers to normalize fuel supply in the country.

This is contained in a letter which Henry Kachaje, Chief executive of Mera has addressed to the Reserve Bank Governor which MIJ FM   has seen.

Kachaje issued the letter.

According to Kachaje the   request comes as the country is currently facing fuel shortages due to reduced imports as local commercial banks have not been able establish adequate Letters of Credit for fuel imports- a development which is detrimental to the economy.

In addition, Kachaje said currently some Commercial Banks are offering different denominations in small amounts, and the cross rate is resulting in high landed costs that would push pump prices higher.

Meanwhile, the Mera CEO has asked Reserve Bank to consider forex allocation to licensed importers who need assistance of the central bank to have their applications for Letters of Credits with various local commercial banks established which includes Nocma, Petroleum Importers Limited (PIL),) Mount Meru Petroleum Limited and Energem Petroleum Limited.

Recently Kachaje told the nation that the problem of fuel supply was a result of logistical challenges.

 

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