Malawians should expect more economic tough times ahead as prices of goods are expected to go up following the latest move by the Malawi Energy Regulatory Authority (MERA) to hike fuel prices, a move that is likely to push up prices for maize in the country where there are already food shortages.
The price increase is partly in response to weakness in Malawi’s kwacha currency against the U.S. dollar as well as changes in the cost of importing the fuel.
Fuel prices went up again in March this year and the new fuel prices are with effects from 10th June, 2016.
Petrol has risen from K743.30 to K788.30 on retail, Diesel has gone up from K722.80 to K766.90 while Paraffin will be selling at K609.80.
On wholesale price, Petrol will now be sold at K722.450, Diesel at K701.05 while paraffin will be purchased at K543.95 per litre.
MERA said the combined effect of the movement of import prices and the kwacha exchange rate against the dollar had increased the cost of petrol and diesel.
Chief Executive Officer or MERA, Raphael Kamoto, said: “This follows assessment of the impact in the movement in the international oil prices exchange rate of the Kwacha to the US dollar and other Macro-economic fundamentals on the landed costs of the three products.”
The falls in the kwacha combined with a poor harvest last year has helped to increase inflation to 24 percent. Food prices have risen putting pressure on lower-income households.