Consumers are in for tough times as the Malawi Energy Regulatory Authority (Mera) has hiked fuel prices effective today 10 November, 2023, with Petrol fetching K2,530/Litre from K1,746 (44.9% rise), Diesel at K2,734/ Litre, up from K1930 (42.4% increase) while Paraffin is at K1,910 from K1,261(up by 51.47%).
The development comes hot on the heels of the 44 percent devaluation of the Malawi Kwacha which was recently announced by the Reserve Bank of Malawi.
According to a statement signed by Mera Board Chairperson Reckford Kampanje, the decision has been arrived at in light of the 44 percent devaluation of the local currency and taking into consideration prices on the global market.
“All operators are required to sell petroleum products at prices not exceeding the above maximum prices,” Kampanje says.
The energy regulator further says, in line with the Automatic Tariff Adjustment Formula (Ataf), the 18% electricity tariff adjustment that was effected in September when electricity price rose to K123.26 now translates to K173.70 effective today.
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“…the exchange rate has moved to K1700/US$ as announced by the Reserve Bank of Malawi on November 8 while the CPI [Consumer Price Index] has moved to 146.4 as noted in September 2023.
“Applying these economic fundamentals to the Ataf results into a 40.92% tariff increase,” reads Mera’s statement.
Principal Secretary in the Ministry of Trade and Industry, Christina Zakeyo on Thursday warned against unreasonable adjustment of prices for goods and services by traders.
“Some traders have even temporarily closed their businesses in order to adjust prices for old stock that were already in shelves and warehouses before the devaluation,” she noted.
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She said the ministry will intensify surveillance and act against those found perpetuating the malpractice.
