By Edwin Mauluka
Malawi motorists are facing yet another squeeze as fuel prices rose sharply today, October 1, after nearly two years without an adjustment, the Malawi Energy Regulatory Authority (MERA) has confirmed.
In a statement dated September 20, signed by MERA board chairperson Charles Kambauwa, the regulator said the increase reflects recent movements in international petroleum prices and exchange rate fluctuations.
Kambauwa explained that the new prices are aimed at ensuring a stable supply chain while keeping pump prices cost-reflective.
- Petrol will now sell at MK3,499, up from MK2,530 — a 38.3% increase.
- Diesel will sell at MK3,500, up from MK2,734 — a 28.0% increase.
MERA attributed the hike largely to the weakening Malawi Kwacha (MWK) against the US Dollar (USD), despite falling Free-On-Board (FOB) prices of petroleum products internationally. Importers were reportedly being quoted at an average exchange rate of MWK2,350/USD, compared to the official market rate of MWK1,751/USD.
“The FOB prices, road freight rates, railage, insurance, handling, and in-transit losses at MWK2,350/USD have increased the In-Board Landed Costs by 52.42% for petrol and 49.67% for diesel,” MERA stated.
This is the first adjustment since November 2023. Under the Automatic Pricing Mechanism (APM), prices are revised whenever petroleum landed costs shift by more than ±5%.
The timing underscores a recurring challenge: in the September 16 general elections, voters overwhelmingly rejected outgoing President Lazarus Chakwera and the Malawi Congress Party (MCP), citing the high cost of living, food inflation, fuel shortages, and foreign exchange crises as decisive issues.
