By Cathy Maulidi:
The Malawi Energy Regulatory Authority (Mera) has disclosed plans to harmonise fuel prices in the country with those in neighbouring countries, saying that low prices in Malawi are promoting smuggling of the commodity.
Mera Chief Executive Officer Henry Kachaje made the statement during a meeting with the Parliamentary Committee on Natural Resources on Tuesday.
He explained that transporters purchase more fuel upon entering the country and then smuggle it into their respective nations.
“We are concerned that our fuel prices are considerably lower than those in neighbouring countries. Unfortunately, this encourages transporters and traders along our borders to prefer refuelling in Malawi, which puts additional pressure on the demand for fuel. This is currently under review, and once determinations are made, appropriate measures will be taken,” Kachaje said.
Executive Director for Consumers Association of Malawi (Cama), John Kapito, trashed the idea describing it as nonsensical.
“I find this argument to be baseless. It does not hold water. If the issue is smuggling, it should be better addressed by law enforcement agencies such as the police, rather than by aligning prices with our neighbouring countries.
“What would happen in a case where we increase prices and a few days or weeks later those neighbouring countries reduce their fuel prices. The cost of goods is already high, and an increase in fuel prices could result in significantly higher prices for goods on the market,” Kapito said.
