Reserve Bank of Malawi keeps benchmark lending rate at 25.0 pct

Reserve Bank of Malawi has left its benchmark lending rate unchanged at 25 percent.

Governor of Reserve Bank of Malawi, Charles Chuka

Governor of Reserve Bank of Malawi, Charles Chuka

Malawi Kwacha

Malawi Kwacha

The central bank said s it expected inflation to trend down to around 15 percent by June partly as a result of lower fuel prices after energy regulator slashed by a 10% margin the price of pump petrol in the wake of recent revelations that the commodity has one of the highest prices in non producing African countries..

In a statement posted on its website, the central bank also said growth in the agriculture-driven economy, which was earlier projected at 5.8 percent, may be revised downwards due to the late on-set of rains and flooding.

Malawi Energy Regulatory Authority (MERA) announced that petrol will now be selling at K696.30 from K760.40 while Diesel is at K705.50 per litre from K785.40 Paraffin is now at K609.30 from K678.80.

Minister of Natural Resources, Energy and Mining Atupele Muluzi,  explained :” Malawi has the highest fuel prices, but this is due to the logistical challenges that we experience as a landlocked country. We rely on road transport, which unfortunately is not cheap.”

Muluzi said government would  bring down the cost of fuel, as it has been negotiating with fuel importers to use the railway line.

Mera acting chief executive officer Elias Hausi backed Muluzi on reasons why Malawi has the high fuel price.

He said, “Although global fuel prices have fallen by about 50 percent, other transportation costs and taxes have not fallen by the same margin.”

 

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9 thoughts on “Reserve Bank of Malawi keeps benchmark lending rate at 25.0 pct”

  1. Jelbin mk says:

    There was a time in Malawi when people used to listen to any lie spat out by a cabinet minister but nowadays people do analyse whatever enters their ear drum so our ministers be careful when opening your mouths because it embarrasses you when you talk naked lies. How can you justify the fuel price reduction of 10 percent while the whole price downfall is 50% where does the remainder 40% go? Logistics can claim only 14% of the remainder and where does the 26% go? There is something you stupid people are doing that we don’t know but one day we will know whether you like it or not do you hear Atupele?

  2. Achimidzimidzi says:

    Elias Hausi and Atupele Muluzi have agreed but on flimsy point. You need to be extremely dull to agree with them.

    The only reason why our costs of ferrying fuel from the coast is high, is that most transporters have connections with politicians. So they charge excessively to share the proceeds. Or politicians source the transporters on be half of MERA so they get commissions.

    Your point of ‘landlock country’ is not true honorable.

  3. Kanyimbi says:

    First the government must be recommended for making the prices low.

  4. can you mation other landlocked countries which has low fuel prices here

  5. aphiri says:

    Zambia and Zimbabwe eve Botswana are land locked countries even far from the ports but fuel is cheaper than ours. They also use road tankers . We like to cheat ourselves. Lets wake up

  6. mtubii says:

    Is Malawi the only landlocked country? How do the other countries manage? Nde pagona nkhani.

  7. wanda says:

    Let’s hope this is not cheap politics. Malawians are tired of poverty engineered by poor policies.

  8. Patriot says:

    Anthu a chipani cha chimanga folo nkumanamiza anthu.
    The truth is that, kwacha fluctuation ndi ya bodza, ndalama za mota engil.

  9. ujeni says:

    Atupele Muluzi is a joke, other landlocked countries havr lower fuel prices than Malawi. We are so silly and lazy in Malawi. Other landlocked countries worked out this problem some 50 years ago. Dont blame logistics as the problem, blame Malawi governments for not being forward looking and development conscience. Look without the Chinese MP’s would still be congregating far away from Capital City to this day, wasting money(allowances)

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