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Five new fuel firms coming
By
Aubrey Mchulu - 14-05-2002 |
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Five local investors have applied for licences to open fuel selling and importing firms in the country and the licensing committee last week processed two applications.
Lewis Mhango, head of planning in the Department of Energy and Mining, said processing three of the five applications was awaiting fulfilment of some application requirements.
But he refused to give names of the five local investors who have tendered applications for fear of disturbing the deals.
“One of the two applicants [we have] processed will be operating as an importer and wholesaler while the other will also be involved in retailing,” said Mhango in a telephone interview from Lilongwe.
He said an increase in the number of players in the oil industry would benefit the country through creation of jobs and competition leading to high standards of services and lower pump prices in the long term.
“As policy advisors [to the government] we feel there is no harm to have additional fuel companies in the country. We feel the move will bring many benefits,” said Mhango.
Malawi already boasts of fuel multinationals such as BP Malawi, Total, Mobil Oil, Caltex and Petroda. The privately-owned fuel companies in 1999 formed a consortium called the Petroleum Importers Limited, a firm that imports about 80 percent of the country’s fuel requirements.
Mhango said Petroleos De Mozambique (Petromoc), which showed interest to operate in Malawi last December, was yet to submit its application.
The licensing committee, according to Mhango, comprises ministries of Commerce and Industry, Local Government, Lands and Labour; National Economic Council, Department of Energy, Environmental Affairs Department, Malawi Bureau of Standards, Petroleum Control Commission and the Road Traffic Directorate.
Mhango said, among other criterion, the committee looks at the applicants’ investment programme, market and financial projections, possession of appropriate land for storage of fuel, environmental impact and availability of equipment approved by MBS at service stations.
The Energy Policy has liberalised the country’s energy sector to, among other things, open the petroleum industry to competition. |
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