Malawi effects 5pc hike on fuel: To have knock-on effect for transport, food costs

The Malawi Energy Regularly Authority (Mera) has increased fuel prices effective Saturday October 6 2018 a move that is likely to push up cost of transport, cost of living, goods and services, further hurting poor families.

Malawi has increased prices of petrol and diesel by 5 percent with effect from Saturday October 6 2018

The authority announced in a statement 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.

According to the new price structure, petrol  from Saturday, October 6, is now selling atK932.50 from K888.00 while diesel is to sell at K935.60 from K890.90 and paraffin will be sold at K755.30 from K719.30.

Mera chief executive officer Collins Magalasi said the  increase will ensure there is enough resources to continue to import.

But motorists and public transport users are facing major economic headaches.

The knock-on effect will add to the pain with bus and taxi fares possibly going up too along with food prices.

The hikes come as the International Monetary Fund (IMF) mission to Malawi has said the country’s general economic performance is on track .

“Malawi’s economy continues to grow while inflation remains on a declining trend. Moderate economic growth is likely to strengthen to about 4 percent in 2019, followed by a rise to 6-7 percent over the medium term,” said the IMF  Mission Chief to Malawi, Pritha Mitra.

She said inflation is expected to reach 9.5 percent at end of 2018 before gradually converging to around five percent over the medium-term.

Technically, inflation refers to the rate of the general rise or movement in prices of goods and services consumed in an economy. It is also defined as a general and sustained rise in the level of prices of goods and services.

President Peter Mutharika highlights the single-digit inflation rate among his administration’s achievements in terms of economic management.

Economic commentators say stable inflation is one critical factor of macroeconomic fundamentals. It helps both individuals and businesses to make long-term plans. It is a factor towards an improved business environment alongside lower real interest rates.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

newest oldest most voted
Notify of
Duduzane
Guest

A pathfinder kaya mumati ndani ndi munthu osaganiza ndipo mutu siukugwira. Ku rsa akwezadi mafuta katatu within a shot period of time koma still ku malawi mafuta akudula heavy. 900 pamene south africa ndi R13 . Olo atakweza ka ten still mtengo wa mafuta ku malawi uzakhalabe pa mwamba. Komanso ku south africa njoka yopezera ndalama siyivuta ngati ku malawi. Anthu ambiri akugwira ntchito

pathfinder
Guest
pathfinder

Iwe duduzane usaname apa, mafuta ku SA ali pa R17 pa litre, zachamba eti kuzolowela kukwera ma minbus

pathfinder
Guest
pathfinder

Ndiye uyipange R17 times 52 even 55 malawi kwacha upeza kuti ndichimodzimodzi, ungandiuze chiyani mbutuma ngati iwe

Shitholes Diarrhoea Progressive Party
Guest

Alamu Pumani Mwakalamba mukutipheranji? Those who will benefit are CEOs Amasungula.

Vinco
Guest
Vinco

What kind of government do we have??? Boma losaganizira anthu ake ??? Aaaaaaaa this government needs to go sure on 21 May, 2019. Mmene aMalawi tikuzunzikiramu, ndiye wina kupanga chigañizo chokwezanso mafuta??? Akufuna titani anthufe????? Mafuta akakwera chonchi, everything goes up as well!!!! DPP, ulendo wako, wakwana sure!!! Mmalo momawanyengerera a Malawi, mukuwafinyanso!!!!!!!

pathfinder
Guest
pathfinder

A Vinco taziganizani inu, malawi ilibe zitsime zamafuta, imachita kuyitanisa, tsono ngati mafuta akudula mayiko omwe amawenga mafutawo kulibwanji malawi?

braveheart
Guest

From 1/10/18 fuel in SA has gone up with R1..the highest increase in over 10 years or so..

Maclon
Guest
Maclon

@ Pathfinder, whether in other countries fuel prices are increasing every two months or not but know that people here are feeling the bite of these inflations. Most of those affected are the employed and jobless masses.

When somebody complains, it does not mean that they are ignorant.

They might be more informed than yourself. They way you articulate issues it seems you are an overzealous party loyalist.

Make Malawi Great
Guest
Make Malawi Great

actually those subsided fuel prices are higher we are only sitting on a time boom!

Bystander
Guest
Bystander

Whether Malawi is doing well or not what I know is that prices of all commodities and services are going to rise. Meanwhile my income shrinks

pathfinder
Guest
pathfinder

Ndizosadabwitsa izi, chifukwa ngakhale mayiko ochita bwino ngati SA mafuta akumakwera every two months. So amene angapeza ponyozera boma ndi anthu omweomwewo otsutsa, mbutuma za anthu zosadziwa kuti mmayiko ena zinthu zikuyenda bwabji chifukwa cha umbuli.

HoRror
Guest
HoRror

Mbutuma ndi iweyo. Look take out rural electrification levy from fuel. Reintroduce it when u start producing enough power again. This fuel hike will imporse extra burden to the arleady burdened pple
Even road levy I dont know where the money goes coz most roads are donor/ngongole funded.

Mulomwe
Guest
Mulomwe

The single digit inflation rate is all cooked up. It has not translated and affected REAL people’s lives. Malawians are worse off than when Muluzi was in power. Stop taking the Malawi people for mugs – 21 May, tsiku lachigamulo. Some docile so called Maliseche needs to get a big boot to the head.

Bibo
Guest

Hedee tiyeni nazo!!! Ena akuti secondary school fees yikhale yaulele bwantchi kuyika ndalama kumafuta kuti ife a Malawi tiva kukoma boma mayika mtima pazikha zake

More From Nyasatimes