Malawi Raises Fuel Prices Due to Weak US Dollar

Malawi Energy Regulatory Authority (MERA) Vice Chairperson Timothy Valeta on Monday announced a 25 percent rise in the cost of fuel at the pumps in the country with effect from Sunday. Petrol, selling at MK200.90 (US$1.55) per liter before the rise, is now at MK251.20 (US$1.79) per liter, while diesel was at MK187.60 (US$1.34) per liter and is now at MK234.50 (US$1.68) per liter.

Paraffin, used by most rural households for lighting, has been adjusted from MK132.20 (94cents) per liter to MK165.30 (US$1.18) a liter.

Valeta told a news conference in Lilongwe that the decision to increase the fuel prices was due to the rising of the global prices triggered by the weakening of the US dollar.

“A non-oil-producing country like Malawi has been largely affected with the turn of events in the geopolitical circumstances in the oil producing countries, and growth in aggregate demand for fuel worldwide,” he said.

He added that Malawi has been able to maintain a “low fuel price regime” because of the ability of its Price Stabilisation Fund (PSF) to cover import costs incurred by the importers.

Valeta said the rise in prices on the international market has in recent months eroded the PSF, thereby impairing its cushioning effect with large net losses being posted.

Meanwhile, the Consumer Association of Malawi, Michael Usi, has expressed concern over the increase in fuel prices.

“The price adjustment of fuel would greatly affect poor Malawians because prices for goods on the market and commuter transport will also increase,” he said.

Source African Press Agency

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