National Oil Company of Malawi seeks to double fuel storage capacity

The National Oil Company of Malawi (Nocma) is moving to double the nation’s strategic fuel storage capacity from 60 million to 120 million litres. A $9.7 million contract for the expansion in Mzuzu has already been awarded to Optech Engineering and Einstein Construction, while tenders for additional facilities in Blantyre and Lilongwe are currently underway.

Energy Minister Jean Mathanga has defended the infrastructure drive as an essential measure to strengthen national supply security, stating that the government is working to ensure sufficient fuel for consumption. While Malawi’s daily consumption of approximately two million litres should theoretically allow for a 30-day buffer with current reserves, chronic foreign currency shortages often leave actual supplies depleted to less than a week’s cover.

Economists and consumer advocates have raised concerns regarding the timing of the expansion. Economist Velli Nyirongo noted that the country is attempting to increase storage at a time when it struggles to secure the foreign exchange necessary to keep existing supplies flowing. Critics argue that the primary bottleneck is financial rather than structural, suggesting that the focus on large-scale infrastructure may distract from the immediate need to resolve currency and liquidity constraints.