CAMA demands fuel market liberalization

Malawians could continue sleeping at filling stations and paying more for fuel on the black market unless government changes its importation policies, Consumers Association of Malawi (CAMA) executive director John Kapito has warned.

Speaking at a press briefing on Sunday, Kapito said the fuel crisis requires government to open the market to more importers to improve supply, even if consumers have to pay higher prices.

He said the conflict involving the United States and Iran has disrupted fuel supply routes, making it difficult for Malawi to secure adequate supplies even when foreign exchange is available.

According to Kapito, wealthy buyers with the resources to secure scarce fuel are gaining an advantage, leaving ordinary consumers struggling with long queues and unreliable supplies.

He said the situation has become painful for motorists who spend entire days at filling stations, sometimes without getting fuel, while households also struggle to access cooking gas.

“Price is not only the determining factor on goods and services. Availability of the goods is so important,” said Kapito, arguing that consumers cannot benefit from low official prices when essential products are unavailable.

He urged government to license more players willing to import fuel and allow them to sell at prices that reflect the cost of securing supplies under the current market conditions.

“So we will need to work much harder and find now people that can be able to say I will risk and I will pay my own money to bring in fuel into Malawi and then please give me better prices.

“As long as we have those people that are willing to bring in fuel in the country and then be able to tell us that I will be able to sell but somehow even a bit higher and then we can be able now to control these queues that we are seeing,” he said.

Kapito said opening the fuel market to additional suppliers could help ease pressure on motorists and businesses, while warning that the country cannot afford to let the energy crisis continue without urgent action.

He said maintaining the existing importation arrangements could prolong shortages, adding that government should adapt its policies to the changing international situation rather than rely on the same approach.

“If we insist on doing business the way we have been doing it before in the importation of fuel, other than bring in these new other players on the market and liberalize the prices it will take us a long time to do,” he added.

He described Malawi’s wider energy crisis as critical, pointing to persistent electricity blackouts alongside shortages of fuel and gas.

He also questioned the status of solar batteries that authorities had reportedly said were being brought into the country, calling on the media to demand answers about their availability and impact.