Malawians react angrily to  fuel price hike as Kwacha weakens, inflation on upward spiral 

Malawians  took to the  social media on Thursday  to react angrily to Malawi Energy Regulatory Authority (MERA) decision to effect a hike on fuel setting stage for increase in cost of living.

Mera chairperson Bishop Bvumbwe and CEO Magalasi:  Fuel hike 

Hellen Chabunya: It’s corruption tax

Continued rise in inflation rate could have undesirable consequences on the economy

MERA  statement issued by its board chairperson Reverend Joseph Bvumbwe  seen by Nyasa Times stated that the fuel hike is as a result of the depreciation of the Malawian Kwacha against major currencies and trends in the petroleum market.

Petrol is now selling at K990.30 from K932.50 per litre while diesel is now selling at K990.40 per litre from K935.60.

Paraffin is now selling at K785.00 from K755.30.

The hike in fuel will also affect the prices of commodities on the market and this will have a huge bearing on Malawians.

This year alone fuel has been hiked for three times.

Malawi expressed their disappointment over the fuel hike whenthe global oil prices are on a downward trend.

Political activist Hellen Chabunya protested the fuel on her Facebook page which attracted many comments including that of MERA chief executive officer Collins Magalasi.

“I’m no eceonomist but this does not make sense. Either someone is trying to make up for overvaluing the Kwacah before ordering more pil, raise campaign money for ma Cadet so the rest os us have to somehow pay the corruption tax,” she wrote.

She described the price hike as “corruption tax”.

“We are paying 7% increase when the global prices have gone down 6%… meaning our corruption tax on fuel is 13%,” she posted.

According to a global petrol price tracking portal, fuel prices have been declining during the same period Malawi has seen a swift hike in petrol and diesel prices.

“During the past week, crude oil prices declined for a sixth consecutive week due to the surging supply. As a result, the world average prices of gasoline and diesel also went down to levels of 1.11 USD and 1.06 USD per liter respectively” notes the portal.

For four months in a row, Malawi’s year-on-year inflation rate has been on the upward spiral with National Statistical Office (NSO) figures released Wednesday showing the rate has jumped by two percentage points from 9.5 percent in September to 9.7 percent in October.

The jump in inflation, caused by rising food and no-food items, has raised fears that the Reserve Bank of Malawi (RBM) could increase its policy rate—the rate at which commercial banks borrow from the central bank—at its next Monetary Policy Commitee (MPC) meeting in December. The rise in policy rate could also compel banks to increase the cost of borrowing.

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mtete
Guest
mtete

You can blame MERA as much as you want but, believe me, this organization, just like MACRA and, literally, all statutory bodies are puppets which can be dangled by DPP anytime they wish. CEOs in these organizations have pawned their brains to the crooks such that they can’t think any more. What a waste of brains. Perhaps there is little they can do; what with families to care for and those children still at school. We Malawians are too friendly, too polite and bending towards stupidity. Elsewhere this fuel hike would have been a big issue, sending people on the… Read more »

gogomala
Guest
gogomala

this decision is made by an institution that monitors trends. fuel price is determined by market forces unless we want the govt to subsidy it which for me I cannot support. Malawi is one of the poorest country in the world. we cant compare with south Africa. even south Africa cant be compared with uk. while I agree that fuel is too expensive but what else should be done. should the govt subsidy fuel instread of maize and fertilizer?

Ian
Guest
Ian

Have Malawians ever thought about being a colony again? Why not ask a rich country, like Australia, or Britain or Germany to come in, and to assume colonial rule? You can be assured that the corrupt Malawian leaders would be fired and prosecuted, along with the bureaucracy, and a firm but fair administration would be put in place, and the country would start moving in an upward direction at last.

Ntcheu Woyeeeeeee
Guest
Ntcheu Woyeeeeeee

Prayer Petition For A Civil Servant!
Our Father In Heaven, May Our Salaries Be Regulated By Malawi Energy Regulatory Authority (MERA) The Same Way Fuel Is Being Regulated. In The Mighty & Powerful Name Of Jesus We Pray.

Concerned
Guest

It seems that leaders in Malawi- the said warm heart of Africa- no longer care for the citizens they lead. Of which God expects leaders of countries all over the world with God fearing spirit think about the poor citizens affairs. In my own perspectives never have the Malawian leaders think about comparing the citizens income to those of other global citizens income. To ponder over the truth a person working as gardener in Joni -RSA-earns more salary than a graduate in Malawi unless he/she is employed by an NGO. The trend being used to increase salaries is 5% while… Read more »

linda
Guest

we’re being led by crooks, thieves, mafias. DPP leaders are too greedy, all they dream is stealing from their own poor people!

Nabanda
Guest

2019 vote wisely, remove this pathetic government and put a God fearing leader. Don’t get confused with (team b) NO. These people are one, vote for a servant leader, Chakwera!

Malawiano
Guest
Malawiano

#SomethingMustBeDone

CitizenX
Guest
CitizenX

may2019, something will be done my brother dont worry

Malawiano
Guest
Malawiano

#SomethingMustDone

jeez
Guest
jeez

Mera

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