Fuel prices dip in Malawi — but the real energy crisis far from over

By Edwin Mauluka

Malawi’s energy challenges require long-term structural solutions beyond periodic fuel price adjustments, the National Advocacy Platform (NAP) said on Friday, reacting to the latest pump price changes announced amid the country’s ongoing fuel crisis and rising cost of living.

The Malawi Energy Regulatory Authority (MERA) has announced a reduction in petrol and kerosene prices, a rare development in Malawi, where fuel prices have more often moved in one direction: upwards.

NAP chairperson Benedicto Kondowe welcomed the reduction in petrol prices from MWK6,672 to MWK6,209 per litre, representing a 6.94% decrease, describing it as a positive relief measure for both citizens and businesses.

“While this adjustment is commendable, more comprehensive measures are still required to address the broader cost-of-living challenges facing Malawians,” he said.

Kondowe argued that Malawi needs lasting interventions that go beyond short-term price reviews, including forex stability, improved fuel supply systems, economic recovery measures and stronger energy security.

“Citizens will appreciate this step, but they still expect sustained economic relief,” he said.

He warned that the immediate impact on household costs could remain limited if transport fares and prices of essential goods do not also decline.

“Government must therefore ensure that fuel price reductions are reflected in public transport charges and commodity prices so that the benefit reaches ordinary citizens rather than being absorbed by middlemen and market inefficiencies,” Kondowe said.

MERA Board chairperson Lucas Kondowe said the Energy Pricing Committee (EPC), during its review of petroleum prices since the last adjustment on April 1 2026, found that the average Free on Board (FOB) price of petrol had decreased while diesel prices had increased.

MERA said that under the Automatic Pricing Mechanism (APM), petrol qualified for a downward price revision because the In-Bond Landed Cost (IBLC) had fallen beyond the required trigger threshold.

Diesel, however, qualified for an upward adjustment of 7.56%. MERA said the Price Stabilisation Fund (PSF), rebuilt since the resumption of the APM in January 2026, had accumulated enough reserves to cushion consumers from a diesel price increase for May.

The committee also approved a reduction in kerosene prices after a drop in the commodity’s landed cost.

Meanwhile, the EPC review found that Jet A-1 fuel prices would remain unchanged because fluctuations in landed costs stayed within the ±5% trigger band. MERA therefore maintained maximum airfield prices at MWK5,439 at Kamuzu International Airport and MWK5,423 at Bakili Muluzi International Airport.

“The geopolitical conflict in the Middle East continues to exert pressure on global petroleum prices and related supply chain costs. The Board will continue monitoring movements in petroleum market prices,” Lucas Kondowe said in a statement.

NAP also called for greater transparency in how fuel prices are calculated.

“The decision to absorb a potential 7.56% increase in diesel prices through the Price Stabilisation Fund is a prudent intervention because diesel directly affects transportation, agriculture, manufacturing and commodity pricing. Without this cushion, the country would likely have experienced further inflationary pressure,” Benedicto Kondowe said.

He urged the government and MERA to regularly publish detailed fuel price build-ups — including taxes, levies, stabilisation components and procurement costs — to strengthen public trust and accountability.

“There is also a need to review certain taxes and levies within the fuel pricing structure to determine whether some can be adjusted or rationalised in the public interest during difficult economic periods,” he said.

Also Read: Malawi fuel prices surge up to 82% as global pressures bite

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