Transport costs surge in Malawi as fuel scarcity bites

Fuel shortages at the end of September lifted average monthly transport spending in Malawi by 14.3 per cent, according to research by the Employers Consultative Association of Malawi (Ecam).

Ecam’s latest cost of living analysis puts average monthly transport spending at K160,000 in September, up from K140,000 in August.

The rise came as shortages at filling stations towards the end of the month pushed up the cost of getting around.

The extra K20,000 is money that would otherwise have gone on food, school fees, rent and other essentials.

“Transport costs increased due to fuel scarcity experienced at the end of September, resulting in higher transportation costs,” the study says.

The effects of a fuel shortage reach well beyond the pumps.

Workers who rely on public transport to get to their jobs, parents paying to get children to school and small traders travelling to buy and sell goods all feel the squeeze.

Low-income earners are hit hardest. Their wages are unlikely to keep pace with higher fares, leaving less to cover basic needs.

The impact also spreads through the wider economy. When businesses face higher distribution costs, they tend to pass them on, feeding into the prices of goods and services.

Transport accounts for a large share of household spending, so prolonged fuel shortages could deepen the cost-of-living squeeze, making it more expensive for people to earn a living, reach essential services and meet their daily needs.