The LPG Association of Malawi has called on Government to prioritise foreign exchange allocation for Liquefied Petroleum Gas (LPG) imports, warning that continued shortages are pushing some households back to charcoal and firewood.
The Association says predictable access to foreign exchange is needed to enable importers to secure adequate LPG stocks and prevent disruptions that are affecting households, businesses, distributors and employees across the country.
In an interview, LPG Association representative Phillip White said the industry understands that other sectors also require foreign exchange, but argued that LPG should be treated as an essential energy product.
“We understand Malawi has other priority sectors as far as foreign exchange is concerned and we are not subtracting those. We are just saying LPG is essential and it needs to be treated in that fashion,” White said.
The Association says the shortage is also threatening Malawi’s clean cooking efforts, as consumers who had shifted from charcoal and firewood to LPG are being forced to return to traditional cooking fuels when they cannot find gas.
White said the consequences extend beyond consumers, with businesses struggling to operate normally and distributors and employees also feeling the effects of inadequate LPG supplies.
The Association is also calling for the deregulation of LPG pricing, arguing that importers and distributors should be allowed to determine prices based on actual importation and distribution costs, prevailing market conditions and sustainable operating margins.
The organisation says the current pricing framework, under which the Malawi Energy Regulatory Authority (MERA) sets maximum retail prices, can make it difficult for businesses to respond to changes in international LPG prices and other costs affecting supply.
Beyond the immediate shortage, the Association is raising concerns about Malawi’s dependence on only two major LPG importers, saying the situation creates a vulnerability for the country’s energy supply. It says the Southern Region is particularly exposed because it is effectively dependent on one major importer.
The Association wants Government and other stakeholders to urgently address the supply challenges while working towards a more resilient LPG industry that can provide reliable and sustainable cooking energy for Malawians.
It says ensuring consistent LPG availability is not only a commercial matter but also has implications for household welfare, employment, businesses, forests and Malawi’s clean-cooking objectives.
