By Chisomo Phiri
The High Court in Lilongwe on Thursday ruled that the National Oil Company of Malawi’s (NOCMA) use of the Delivery Duty Unpaid (DDU) method for importing fuel is illegal and detrimental to Malawi’s economy.
Judge Charlotte Malonda ordered the Malawi Energy Regulatory Authority (MERA) to sanction NOCMA for failing to comply with MERA’S directive regarding the 2021/22 fuel tender.
Additionally, NOCMA has been ordered to cover the costs of the case.
The ruling follows a 2021 injunction by the Fuel Tankers Operators Association (FTOA) that sought to prevent NOCMA from using the DDU method.
In an interview with journalists, lawyer Chimwemwe Kalua, representing the fuel tanker operators, said that the court has given MERA 30 days to enforce the order.
Regulations governing fuel importation into the country provide for the use of the ex-tank method (as opposed to DDU).
Under the ex-tank method, the importer takes ownership of the product destined for Malawi and is responsible for in-transit risks such as theft, accidents, and contamination up to the internal receiving depots of oil marketing companies.
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