Malawi economist say fuel price hike cause of worry
An official from an economic think tank has said the government decision to hike fuel prices would trigger goods and services hike which will negatively affect the economy.
The Malawi Energy Regulatory Authority (Mera) announced in a statement released on Friday night that it had increased the pump price of petrol by 5.01 percent and diesel by 5.02 percent to reflect the rise in fuel prices on the international market.
Economic Empowerment Action Group (Eeag) president Lewis Chiwalo said the economy is not doing well and the decision to hike the fuel prices would just negatively affect the ailing economy.
“On paper, the economy might be doing well but on the ground things are different. The fuel price hike does not match the current economic trends,” he said.
He said the fuel hikes are not sustainable to the economy.
“The economy is not in good shape, the government should not have increased the fuel prices this time because fuel is the lifeline of the economy, this has been bad timing,” he said.
He said the markets will respond harshly by pushing the costs to the consumers through goods and services hikes at the time when Malawians have no money in their pockets to spend.
Chiwalo said the fule hike threaten to prevent inflation slowing.
He said inflationary pressures were easing but will start picking up.
Meanwhilem the pump price of petrol is now at K932.50 from K888.00 while diesel is selling at K935.60 from K890.90 and paraffin is being sold at K755.30 from K719.30.
Fuel in Botswana is subsidized. If the Malawi government has the welfare of the people and the economy at heart, , they should also subsidize the fuel prices. Its the implimantation of policies that do not put the welfare of the people first that have made Malawi do go in circles, without improvement.
These prices were quoted on 1st October. This is for those that commented to the effect that I did not know what I was talking about. Prices are in Malawi Kwacha. Sudan 248.72 Algeria 257.39 Nigeria 296.51 Egypt 314082 Angola 385.60 Ethiopia 494.82 Lesotho 549.65 Botswana 558.59 Swaziland 631.25 Namibia 638.38 Liberia 660.23 Chad 661.22 Sierra Leone 691.36 Togo 699.51 Benin 733.98 Tanzania 756.56 Burkina Faso 768.44 Ghana 784.28 Uganda 789.48 Ivory coast 791.42 Cameroon 804.18 Guinea 804.99 South Africa 823.53 Mozambique 832.32 Gabon 855.24 Madagascar 856.27 Morocco 879.88 Senegal 887.15 Malawi 888.00 Rwanda 912.21 Kenya 914.86 Mali 915.24 Burundi… Read more »
India has just reduced the price per litre for its fuel despite falling currency and increase in global fuel price. Basically the state decided to subsidise the cost of fuel to its citizens to grow the economy. Smart thinking
Kikikiki, arrgh! What type of an economist is this Chiwalo.? Do we real have economist in our country. He is saying economy is not good, yet 2 days ago we had a report of the IMF of the country’s economic growth. If he is an economist as per your say Nyasa Times, the man should know what is happening on the world trade. The increase that has been added it is not much. What worries me is that you say economy is not growing yet you are buying expensive cars outside the country and you don’t even complain, you put… Read more »
Where do these daft economists come from?
Fuel prices are adjusted every week, when Malawi was raising its pump prices, South Africa recorded the highest rise the whole world at 6%.
Malawi is land locked, just like many countries, but fuel prices in Malawi are lower that some countries that produce oil.
Fuel in Malawi is cheaper than 71 other countries.
Bear in mind Malawi does not produce anything meaningful, so what do you do with the fuel? Going to the lake?
What a sad country and poor economists.
The basic thing you should have done at least is to find out the current pump prices of fuel on the market (at least) in SADC countries. Otherwise your argument are misguided or stupid to say the least.
You are making my point. You can also do what you are asking me to do. And for your information I know which countries have lower fuel prices in SADC. Who is stupid then, one who knows or one who doesn’t?
That’s not true,which 71 countries are you talking about? do you even have a car yourself?simple arithmetic just our friends in Botswana.
Botswana Pula is P1= k70 sometimes can be even K65 then Petrol is sold @ P8.42 per ltr, ndiye pangani masamu ya P8.42 x K70 mupeza kuti ndi K589.40.
mwagundika kulankhula mwamphavu ngati zoona apa,, manyazi bwanji? sometimes do research before you expose your little knowledge on something like this.
Thank you.
So Botswana on its own is 71 countries.
Amalawi uchitsilu musiya liti?
I can even tell you in Malawi kwacha what each country in the world charges for fuel.
Owning a car is not something special.
This economist is talking nosense, when the gvt doesn’t act fast on fuel hike on international market, the same pipo blames gvt and calls it a time bomb. These pipo school has not helped them..
Even a villager knows the effect of a fuel hike so this isn’t news. Maybe the economist can help by explaining what’s happening with oil prices worldwide that has triggered the increase instead of telling us what we already know. An increase in fuel prices is inevitable and will always be there.