x Abu Dhabi, UAETuesday 25 July 2017

Malawi starts the blame game as fuel shortages take their toll

MALAWI // A fuel shortage has crippled Malawi and the government is spending the equivalent of Dh33.33 million to buy fuel from neighbouring Mozambique. The government has blamed Mozambique for the shortage, claiming that fuel transportation has been delayed by congestion at the ports of Nacala and Beira, a claim denied by managers of both ports. However, Chancellor Kaferapanjira, the executive officer of the Malawi Confederation of Chambers of Commerce and Industry, says poor policy is to blame. "Government employed a very wrong policy when fuel prices went up to $147 per barrel. Basic economics states that if you sell a product at a price lower than the purchasing price, you end up having no product to sell," says Kaferapanjira.