Malawi has raised petrol and diesel prices by more than 40 percent, the country’s energy regulator said on Tuesday, marking the second major fuel price hike in four months and prompting concern about its impact on household budgets and inflation.
In a statement, the Malawi Energy Regulatory Authority (Mera) said it had increased diesel prices by 41.3 percent and petrol prices by 41.9 percent, citing the need to abandon a fixed pricing system it described as “unsustainable”.
The latest increase means that since President Peter Mutharika returned to power in October, petrol prices have risen by about 95%, while diesel prices are up roughly 80 percent, according to Mera’s figures.
The regulator said the fixed fuel pricing framework used by the previous administration had resulted in “significant” financial losses and contributed to supply challenges. It said Malawi is now operating under an “automatic pricing mechanism”, under which pump prices are adjusted in line with import, transportation and other supply-related costs.
Mutharika, who was voted back into office last year, has pledged to revive Malawi’s struggling economy, which has been hit by high inflation, foreign currency shortages and weak growth. However, analysts and civil society groups warned that the sharp fuel price rise could undermine those efforts and deepen an already severe cost-of-living crisis.
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“Fuel is not a luxury commodity. Any increase has a cascading effect on the cost of living,” the Human Rights Defenders Coalition, a Malawian civil society group, said in a statement, warning that higher transport and food prices would disproportionately affect low-income households.
Within hours of the announcement, reports emerged of sharp increases in transport fares across much of the country. Traders and consumers said prices of basic goods and services, including food, were also expected to rise in the coming days as higher fuel costs filter through the economy.
Malawi has already experienced upward pressure on prices in recent months. Commodity prices began rising following the previous fuel price hike in October, while a recent increase in sales tax has added to inflationary pressures, according to economists.
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Mera’s acting chief executive, Dad Chinthambi, defended the decision, saying the price increase was necessary to stabilise the energy sector and ensure continuity of supply.
“The adjustment is required to ensure sustainable fuel supply, electricity services, and the proper remittance of levies to support road maintenance and rural electrification projects,” Chinthambi said.
Under former president Lazarus Chakwera, fuel shortages were a major source of public anger, with motorists frequently queueing for hours at filling stations amid intermittent supplies. Mera said fuel availability has improved significantly over the past two months, following changes to pricing and supply arrangements.
However, critics argue that improved availability has come at a high social cost. Across social media platforms and radio phone-in programmes, many Malawians expressed disappointment with the regulator’s decision, saying they had expected Mutharika’s administration to ease economic pressures rather than replicate policies associated with hardship under the previous government.
Some commentators said the fuel price hikes risk fuelling public discontent at a time when incomes have not kept pace with rising prices. Malawi’s inflation rate remains in double digits, while wages for many workers, particularly in the informal sector, have stagnated.
The government, meanwhile, is seeking to shore up its finances and restore confidence with international partners. Authorities are in talks with the International Monetary Fund to secure a new support package, aimed at stabilising the economy and addressing chronic balance-of-payments problems.
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IMF-backed programmes typically require measures such as subsidy reforms and market-based pricing, which can help improve fiscal sustainability but often carry short-term social and political costs.
Mera said it would continue to review fuel prices under the automatic pricing mechanism, raising the prospect of further adjustments if global oil prices, exchange rates or transport costs change significantly.
For many Malawians, the immediate concern is how to cope with rising daily expenses. “Everything depends on fuel transport, food, services,” said a minibus operator in the commercial capital Blantyre. “When fuel goes up like this, life becomes harder for everyone.”
As the government presses ahead with economic reforms, analysts say managing the social impact of rising prices will be critical to maintaining public support and political stability in one of southern Africa’s poorest countries.
