The Malawi Energy Regulatory Authority announced the adjustments on Tuesday, raising petrol prices by nearly 42% and diesel by about 41%.
The hike comes as President Peter Mutharika’s administration works to rebuild the country’s weakened economy, negotiate a new support programme with the International Monetary Fund, and stabilise public finances. Foreign reserves have dwindled in recent months, contributing to persistent fuel scarcity and long queues at service stations.
Dr Bertha Bangara Chikadza, President of the Economics Association of Malawi, told Channel Africa that the price increases were “unavoidable”, pointing to a history of suppressed fuel prices under the previous administration. Malawi imports all its petroleum products, yet fuel prices were kept artificially low, creating distortions that made smuggling to neighbouring Zambia, Mozambique and Tanzania increasingly common.
“We knew it was just a matter of time,” she said. “The government was cushioning consumers, but the situation was not sustainable. At times, Malawi was spending up to $70 million a month on fuel imports.”
While acknowledging the government’s efforts to stabilise supply, Dr Chikadza warned that the broader economic impact would hit ordinary Malawians hard. With most citizens reliant on privately owned public transport, the fuel hike is expected to trigger fare increases and push up the cost of living. Recent tax revisions and rising electricity tariffs are also adding pressure on households.
“Much as the government is trying to stabilise the economy and price commodities correctly, all these changes are coming at once,” she said. “Malawians will really feel the pinch.”
Analysts expect further adjustments in utilities, including potential increases in water tariffs, as the government works to restore fiscal balance.
–ChannelAfrica–
