DPP MP Ben Phiri fumes on fuel levy: “It’s either we stop paying the levy, or roads should be maintained.”
DPP MP for Thyolo Central, Ben Phiri, has said that it doesn’t make sense for Malawians continue paying the fuel levy for the purpose of road maintenance, yet government does not channel for the intended purpose.
Phiri was speaking in Parliament yesterday as a contribution to the debate on the flow about the “missing” road maintenance levy in the price of fuel which has seen government failing to compensate importers for exchange rate losses incurred.
It is said that Malawi Energy Regulatory Authority (Mera) owes the fuel importers about K785 billion and government has conceded it has no authority to push the companies to pay K330 billion in road maintenance levy funds.
Said Phiri: “The point still remains, Malawians are paying the levy so what we are asking is the minister to bring a report to the House and ask if Malawians should continue to pay the levy. It’s either we stop paying the levy or roads should be maintained.”
However, Transport Minister Jacob Hara assured that there would not be any fuel pump price upward adjustment and that there are ways and means to ensure the situation is cleared.
In an interview, the minister admitted there was a price disparity between what is calculated on paper and the actual price on the market because while government uses official exchange rate of K1 751 to a dollar, fuel importers are sourcing forex at the market rate that is at least K2 200 to a dollar.
The Price Stabilisation Fund, which is meant to cushion marginal price surges, was depleted in 2022 due to import losses, affecting the fund’s ability to compensate importers for recoveries.
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