The Malawi Energy Regulatory Authority (MERA) has hiked prices of petrol, diesel and paraffin.
Petrol which was at K1,380 per litre is now at K1,999. Diesel price has been increased from K1,470 per litre to K1,920 while Paraffin which was at K956 is now at K1,236.
MERA has also hiked the price of liquefied petroleum gas from K2,560 per kilogramme to K2,956. All the new prices are effective June 23, 2022.
In a press statement signed by MERA board chairperson Reckford Kampanje, the energy regulator said the Malawi Kwacha has depreciated by 25 percent since April when MERA also raised prices of fuel.
The energy regulator also noted that Free on Board (FOB) prices of diesel petrol and paraffin have increased in the month of May.
“Oil prices maintained an upward trend due to fears of security of supply following the invasion of Ukraine by Russia. Economies have resorted to stock building in fear of supply disruption from the war,” MERA said.
According to MERA, in determining the new prices, it assessed the exchange rate against the dollar, changes in FOB prices and changes in local factors that determine the maximum pump prices on the landed cost of petroleum products.
In reviewing the prices, MERA also reinstated of the rural electrification levy which was not included in the April review and introduced financing charges to cover costs importers are incurring in obtaining imports financing.
The rise in fuel prices comes as Malawians are already facing economic hardships due to rise in prices of other basic commodities such as sugar, maize and cooking oil.