Govt. warns Traders, Service Providers against taking advantage of New Fuel Pump Price hike

Malawi Government has cautioned trade and service providers in the country not to take advantage of the recent new
fuel prices adjustments to unfairly increase the prices of goods and services.

In a joint statement, the Government through the ministries of Trade and Transport and Public Works is warning traders and service providers that the state will monitor any unjust increase in cost of goods, services and works emphasising that anyone found taking advantage of the situation will be dealt with accordingly.

On its part, the Ministry of Transport and Public Works, are urging all passenger transport operators, including those under the umbrella of Minibus Owners Association of Malawi (Moam) to apply reasonability in responding to the fuel increase with respect to adjusting commuter fees.

In the same vein, the Ministry of Trade is appealing to traders in the country not to take advantage of the recent fuel hike urging them to exercise restraint to temptations of increasing the price of goods, services and works, which is going to hurt consumers and consequently will influence negatively on inflation.

In the statement signed by Trade Minister Sosten Gwengwe and Transport and Public Works deputy minister Nancy Chaola Mdooko the Government said the average FOB prices of petrol, diesel and paraffin increased in the month of September 2021 by 30.56%, 22.04% and 22.54%, respectively when compared to FOB prices, which were applied when determining the ruling prices.

Minister of Trade, Hon Sosten Gwengwe

“Fuel prices have remained volatile on the international market, with the local unit, the Kwacha, equally losing its grip on other major trading currencies, factors that led to pump price hike,” reads in part the joint statement.

Fuel regulators, the Malawi Energy Regulatory Authority (Mera) Saturday evening announced an increase in fuel pump prices by 22.8 percent with effective from Sunday, October, 11th.

Mera chief executive officer (CEO) Henry Kachaje said petrol has hiked to K1, 150 from K899.20, representing a 27.89 percent increase while diesel pump price has been increased by 24.72 percent, to be selling at K1, 220 from K898.

Kachaje further announced that paraffin price has been increased by 15.79 percent and this means it will now be selling at K833.20 from K719.60.

Malawi is not the only country that has been affected by fuel pump price increase as this is attributed to international fuel price increase and recent depreciation of the Kwacha by 4.5 percent.

South Africa, Botswana, Zambia, Zimbabwe and many other countries have also increased the price of fuel due to the global fuel pricing surge.

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