Malawi gov't to establish national oil company

Malawi's Natural Resources, Energy and Environment Minister, Grain Malunga, has disclosed that the government plans to establish a national oil company aimed at ensuring the security of supply of petroleum products in the Southern African country, The Nation of Malawi reported on Tuesday.

Malunga said the government intends to set up the company in partnership with the private sector but with the Malawi government holding controlling stakes.

"The company will be responsible for the establishment of strategic oil reserves in the country as well as overseeing the construction of oil pipelines from the southern border district of Nsanje to the Indian Ocean," said the minister.

Currently, the government has entrusted the duty of importing petroleum products with private oil importers which own a consortium called Petroleum Importers Limited (PIL).

But Malunga said the strategic nature of the commodity has made it necessary for the government to have to take control of the commodity to avoid the country running dry one day.

"We have left it in the hands of the private sector but you know the private sector has its limitations," he said.

Malawi has over the years remained vulnerable to shocks in the fuel supply chain as it only has reserves which can keep the country running for a maximum of 15 days.

Source: Xinhua