Malawi government holds on to fuel prices
Fuel regulator, the Malawi Energy Regulatory Authority (Mera) has conceded it is holding on to fuel prices as analysts say the government is sitting on time bomb.
The chairman of Mera, Bishop Joseph Bvumbwe said the government is using the price stabilisation fund to cushion the rising prices.
“The fuel prices have been rising on the international market but here in Malawi we have not been affected because of the price stabilisation fund,” he said.
Some analysts have cautioned the government over the cushioning of the rising fuel prices, saying the prices will balloon when the government fails to cushion the fuel prices.
The ruling Democratic Progressive Party (DPP) fears failure to cushion the fuel prices would trigger rising fuel prices which would in turn push the cost of living up which can cost the party some votes as the country gears for the 2019 election.