Economic experts have reiterated the need for the government to promote exports to mitigate the impact of international fuel price movements on the local economy.
This comes as the Malawi Energy Regulatory Authority (Mera) on Monday announced to have revised fuel prices upwards, citing changes on the international market as the main factor.
The price of petrol was adjusted from K834.60 per litre to K899.20 per litre, representing 7.74 percent.
Diesel price was raised from K826.40 per litre to K898 per litre, representing 8.66 percent, while paraffin will now be sold at K719.60, from K613.20. This represents a 17.35 percent increase.
Economic expert Donasius Pathera said Malawians should brace themselves for some tough times ahead as prices of almost all commodities would rise.
“It’s high time we realised ways of cushioning these threats to the economy. We need to do economic reprioritisation to ensure that our choices are for the benefit of this nation,” Pathera said.
In a separate interview, Malawi Economic Justice Network (Mejn) Regional Coordinator for the South Mike Banda said the challenge has been exacerbated by lack of accountability on managing the Price Stabilisation Fund.
“Initially the fund is supposed to cushion the country in an event the prices of fuel on the global market are rising so the challenge has really been the fund. Does it have enough funds or are we mobilising enough funds. We need to think of what we can do to boost the fund,” Banda said.
Malawi Confederation of Chambers of Commerce and Industry Chief Executive Officer Chancellor Kafelapanjira said the fuel price increase would have a bearing on the economy.