Motorists in Malawi are having a rough time following the sudden increase in fuel prices as the authorities warn that more hard times are ahead. Reports say the Malawi Energy Regulatory Authority, MERA, raised the prices of diesel and petrol from July 17, 2018, thereby putting more pressure on consumers.
The sudden announcement by MERA last Tuesday is expected to negatively affect the incomes of ordinary Malawians as rising fuel prices, in turn, adversely impact on inflation rate which had been on the verge of slowing down. As economists say, the cost of fuel usually affects the prices of goods and services. This is not cheery for citizens already reeling from the pressure of reduced buying power and a depreciating kwacha.
The Head of MERA, Collins Magalasi, this week wrote to petroleum companies explaining that following the changes, petrol has gone up to maximum retail pump from K824.70 to K888.00 per liter whereas diesel is now selling at K890.90 per liter from K815.80. Paraffin, used mostly by industry and the poor masses, is now selling at K719.30 per liter from K648.70.
Mr. Magalasi said MERA officials resolved to allow only 50 percent of Landed Cost (IBLC) of petroleum products on pump prices “to reflect the increasing actual landed costs of petroleum products on the international market.” He said the regulatory board chaired by Bishop Joseph Bvumbwe further resolved that the remaining 50 percent increase in landed costs be “cushioned by the available funds in Prices Stabilization Fund.
Prices of fuel in Malawi have relatively been stable in the past year.
