In a move that has sparked widespread concerns, Malawi’s energy regulator has announced a significant increase in the prices of petrol and diesel, marking the second such hike in just four months. The Malawi Energy Regulatory Authority (Mera) has justified the decision, citing the “unsustainable” fixed pricing system of the previous government and the need to ensure “sustainable fuel supply, electricity service, and the proper remittance of levies to support road maintenance and rural electrification projects.”
The latest increase has seen diesel prices rise by 41.3% and petrol prices by 41.9%. This means that since President Peter Mutharika’s administration took power in October last year, the cost of petrol and diesel has gone up by 95% and 80% respectively. The move has drawn criticism from local commentators, who argue that the fuel price hike will harm the president’s efforts to revive the country’s ailing economy and worsen the cost-of-living crisis for many Malawians.
The Human Rights Defenders Coalition, a Malawian civil society group, has warned that the increase in fuel prices will have a “cascading effect on the cost of living,” as fuel is not a luxury commodity. The group’s statement echoes the concerns of many Malawians, who have voiced their disappointment on social media and radio phone-in programmes, expressing their expectations that the Mutharika administration would improve people’s circumstances rather than produce the same economic outcomes as the previous government.
The fuel price hike comes at a time when the government is attempting to improve the country’s finances and negotiate a new package of assistance from the International Monetary Fund. Mera’s acting CEO, Dad Chinthambi, has justified the decision, stating that it is necessary “to ensure sustainable fuel supply, electricity service, and the proper remittance of levies to support road maintenance and rural electrification projects.”
However, the move has already had a tangible impact on the lives of Malawians, with reports of sharp increases in transport fares in most parts of the country. Prices of other essential goods and services, such as food, are also expected to rise, further exacerbating the cost-of-living crisis.
The fuel price hike is a complex issue that highlights the delicate balance between economic reforms and the well-being of the population. As the Mutharika administration navigates these challenges, it will be crucial for the government to address the concerns of its citizens and ensure that any economic measures taken do not disproportionately burden the most vulnerable segments of society.
