Malawi fuel prices go up: Time to dig deeper into pockets

Bad news of the move –motorists will have to dig deeper into their pockets following the upward adjustments of fuel prices by Malawi Energy Regulatory Authority (MERA).

The   regulator adjusted upwards fuel prices effective Friday May 8, 2015.

Petrol has gone up from MK696.30 to MK723.60 representing a 3.92% hike. Diesel has gone up from MK705.50 to MK734.60 representing a 4.12% hike. Paraffin has gone up from MK609.30 to 633.20 representing a 3.92% hike.

“Malawi Energy Regulatory Authority (MERA) considered recent trends in the world petroleum products’ prices and changes in other macroeconomic fundamentals in the local market and their impact on energy prices,” a statement by MERA board Chairperson Dingiswayo Jere said .

The statement further has indicated that the pump prices have gone up because of an increase in the same on the world market as well as the stabilising of the local currency.

Malawians have enjoyed two fuel price reductions this year due to the lowering prices on the global market and the appreciation of the kwacha.

But recently MERA acting chief executive officer Elias Hausi warned that the price of petrol may be adjusted upwards in April if the regulatory body does not have enough money in the price stabilisation fund (PSF).

On the reduced uptake of fuel in the country, Hausi attributed this to large truck operators who are opting to buy fuel from neighbouring countries because prices are lower there.

“Our projections this year show that we were supposed to be consuming 25 million litres of petroleum products a month but we are only using 21 million per month because truck operators prefer fuelling outside the country.

“Apart from that, there is also the issue to do with blending of petrol and ethanol and I believe it is being done accordingly; hence, the statistics showing less uptake of fuel,” he said.

Malawi’s major donors under the Common Approach to Budget Support (Cabs) are withholding budget support for Malawi worth $150 million (over K60 billion) following the revelations of massive public funds abuse at Capital Hill popularly known as cashgate.