The Government of Malawi has reintroduced the fuel levy, a tax on petroleum products that had previously been suspended by the Malawi Congress Party (MCP)–led administration in an effort to reduce pump prices for consumers. Authorities say the levy’s return is a necessary measure to address the severe deterioration of the nation’s road network.
Transport and Public Works Minister Jappie Mhango explained that while the temporary suspension of the fuel levy eased costs at the pump, it significantly reduced funding available for road maintenance and rehabilitation. With Malawi’s roads increasingly damaged and in urgent need of repair, the government says the levy is essential to generate dedicated revenue for long-term infrastructure investment.
According to the minister, the reinstated fuel levy will provide a stable financing stream for routine maintenance, resurfacing projects, and the reconstruction of major road corridors that have suffered from years of underfunding. Without a reliable funding mechanism, he warned, further delays in repair work would increase long-term costs and hamper economic activity, particularly in rural areas reliant on road access for trade and services.
The decision has drawn mixed reactions from the public. Some motorists and commuters expressed concern about rising transport costs and inflationary pressures, while others acknowledged the deteriorating state of the road network and the need for sustainable funding solutions.
Analysts have noted that Malawi’s heavy reliance on donor funding and its limited domestic revenue base have constrained investment in infrastructure. By tying road funding directly to fuel consumption, the government aims to create a more sustainable financing model that aligns road use with maintenance responsibilities.
The reinstated fuel levy is expected to be applied across all grades of gasoline and diesel. Minister Mhango said the government will also step up transparency and accountability measures to ensure the funds collected are used efficiently and effectively for roadworks.
While painful in the short term, authorities argue that the fuel levy is the only viable approach to halt further deterioration, restore critical road links and support broader economic development.
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