Consumer Association of Malawi (CAMA) says the holding of fuel prices by Malawi Energy Regulatory Authority (MERA) will hurt consumers since a huge price increase will be effected at once.
In a statement today, Executive Director for CAMA John Kapito said that prices of fuel Malawi have been going up since December last year but MERA decided to hold increases for reasons better known by itself despite the law or regulations demanding MERA to adjust prices of fuel once landing costs are above or below five percent threshold.
Kapito added that the failure to adjust prices of fuel has resulted in the depletion of the Price Stabilization Fund (PSF) leading in huge losses by the Oil marketers.
He also expressed concern that both Diesel and Petrol prices have gone up by an average of twenty-five percent (25%) which he said is huge to be effected at once as this will be one of the biggest increases and will hurt Consumers who are already experiencing serious economic challenges and high cost of living.
“The only reason why MERA and Government are reluctant to increase prices of fuel is based on political persuasion rather than economical and the implications of such poor judgement is retrogressive to both the economy and the Consumer,” he explained.
He then reiterated his call for MERA to remove some levies on the price buildup such as road fund, MAREP and MBS levies as this would minimize the impact of the new fuel prices.
He went on to say that during the political campaign the current leadership promised to have reduced prices during its tenure which unfortunately is not working the way they had wished.
“Our advice to Government is to move from dreams to reality and do the necessary things that can help the economy grow. By holding prices of fuel, Government and MERA should understand that they are worsening the situation because these prices that are being held will still be passed on to Consumers,” said Kapito.
Brace for impact: Malawi to hike fuel prices