By Twink Jones Gadama

In a landmark ruling, the High Court has declared the National Oil Company of Malawi’s (Nocma) use of the Delivery Duty Unpaid (DDU) method for importing fuel as illegal and detrimental to the country’s economy.

Judge Charlotte Malonda ordered the Malawi Energy Regulatory Authority (Mera) to take action against Nocma for non-compliance with regulatory directives.

The court’s decision follows a legal challenge by the Fuel Tankers Operators Association (FTOA), which sought to halt Nocma’s use of the DDU method.

The association argued that the method, which transfers ownership of fuel to Nocma only upon delivery, contravenes regulations governing fuel importation.

According to the regulations, the ex-tank method should be used, where the importer takes ownership of the product and assumes in-transit risks.

The court upheld this argument, giving Mera 30 days to enforce the order and directing Nocma to cover the costs of the case.

This ruling is expected to have far-reaching implications for Malawi’s fuel importation sector, with potential benefits for the economy and consumers.

The court’s decision underscores the importance of adherence to regulatory frameworks in ensuring fair competition and protecting national interests.