The Malawi Energy Regulatory Authority (MERA) has increased prices of fuel.
Petrol is now at K1,150 per litre from K899.20, Diesel is now at K1,120 per litre from K898.00 and paraffin is K833 per litre from 719.60.
The new prices are effective at midnight on 10th October, 2021.
Speaking to journalists today in Lilongwe, MERA Chief Executive Officer Kachaje indicated that the rise in fuel price comes due to international fuel price increase and recent depreciation of the Kwacha by 4.5 percent.
“The increase has come about because the petroleum products are imported products and we buy them in dollars so the Kwacha against the dollar has been depreciating steadily but also the international prices of petroleum products have been rising and looking at the combined forces of rising cost on international markets coupled with depreciation of local currency using the automatic pricing mechanism, it has become necessary that we respond and adjust accordingly,” said Kachaje.
On whether price stabilization fund has been used to protect consumers from high prices, Kachaje said the price stabilisation fund has actually been working because the changes that have led to fuel hike were first noted way back from March.
” From March, April all the way up to now we have been subsidizing some of losses in importation using the price stabilisation fund but it has been depleted so we can’t continue. We need to reflect the proper prices now so that we can rebuild the price stabilisation fund again,” said Kachaje.
Kachaje also warned some suppliers who have been hoarding fuel based on speculations that the price will increase.
He said hoarding petroleum products is illegal and he called upon the public to report dealers that are suspected to be hoarding fuel and MERA will take appropriate action.