We exist to undertake the following functions:
Manage strategic fuel reserves: With financing from Government, we are constructing fuel storage facilities in Mzuzu, Lilongwe and Blantyre. In total, the facilities will hold stocks to last the country 60 days. Once filled, these stocks will be used to ensure that there is no stock-out of fuels in the country.
Promote competition in the oil industry: We will provide fuel storage space at a fee to new entrants to the oil industry as a way of promoting competition in the market. In addition, our stocks will be available to those that would like to operate service stations but have difficulties in getting supplies from the existing oil marketing companies. Existing oil marketing companies will also be able to store fuel with us.
Promote upstream and oil and gas exploration: Under the National Energy policy of 2003, we will get involved in oil and gas exploration to ensure equitable access to any fossil fuels that maybe found by the country. As exploration is underway, we, in liaison with the ministry responsible for Energy and Mining, will starting working on capacity building in preparation for the day that government will start handling oil and /gas extraction concessions.
Provide leadership to the oil and gas industry: In liaison with the oil industry, we will ensure that a consolidated procurement approach is introduced in order to harness economies of scale (bulk buying advantages) for the benefit of all citizens. This does not mean that we will crowd out industry players. Rather, there will be close coordination at the procurement stage for the benefit of the economy.