Energy regulator MERA says the proposal to increase fuel prices is legit considering several factors that lead to the determination of fuel prices in the country.
This follows a plea the Consumers’ Association of Malawi made asking the Malawi Energy Regulatory Authority for an upward adjustment of fuel prices if the country is to be guaranteed the availability of fuel.
John Kapito executive director of CAMA has observed that the current fuel pump price does not really reflect the total landing cost fuel importers incur thus leading them to dig deeper into their pockets just to have the precious commodity delivered to Malawi.
According to Kapito, this is not sustainable as it will reach a time when importers will no longer afford to bring fuel into the country a thing that could lead to fuel scarcity thus calling for an upward adjustment of fuel pump prices to avoid the same.
Commenting on the matter, Fitina Khonje MERA’s spokesperson agreed with sentiments made by the CAMA executive director but was quick to say the responsibility of adjusting fuel pump prices is with the MERA board.
“Everything being said by CAMA is true, in fact a few days ago as MERA we said the same thing. Kwacha devaluation and prices of fuel on the international markets have led to an increase in the total landing cost of fuel but let me assure Malawians that the MERA board knows what is happening so let us give them a chance to do their job,” Khonje said.
According to Khonje, due to the current arrangement it has with fuel importers, the regulator has accumulated a debt of about 7 hundred billion Kwacha which is likely to increase if the status is maintained.
Malawi last had fuel pump prices adjusted in November in 2023, which saw petrol prices being adjusted upwards by 45 percent while diesel was adjusted by 42 percent.