The Consumers Association of Malawi (CAMA) is calling on the Malawi Energy Regulatory Authority (MERA) to immediately adjust fuel prices to prevent impending fuel scarcity that will have far-reaching consequences for both consumers and the economy.
In a statement signed by its Executive Director, John Kapito, CAMA argues that MERA’s decision to hold fuel price increases has resulted in significant losses for petroleum importers, making it unsustainable for them to continue importing fuel.
The association notes that while price increases will hurt consumers, the effects of fuel scarcity will be more severe.
“The current losses suffered by the petroleum importers are unsustainable and continue to challenge the continued importation of fuel in the country,” Kapito said. “Price increases of petroleum products negatively affect consumers because of their price trigger effect on other goods and services.
“However, when this is weighed against the scarcity of fuel on the market and its negative effects, CAMA believes that the effects of regulated higher prices are a better option than fuel scarcities.”
CAMA warns that fuel scarcities will have serious negative economic and social effects, including fuel being sold on the black market at double the regulated price, increased prices of goods and services due to high transportation costs, and the shutting down of small and large industries.
Furthermore, CAMA emphasizes that MERA’s mandate is to regulate, not control, fuel prices, and that prices should not be politicized. The association urges MERA to adjust fuel prices to affordable levels that fairly compensate fuel importers and ensure a continued supply of fuel on the market.
