Malawi remains among countries with highest fuel prices in the sub-Saharan region, according to recent data tabulated by the Reserve Bank of Malawi (RBM).
The retail pump prices for both petrol and diesel, at $1.49 (K2, 530.00) and $1.61 (K2, 734.00) per litre, respectively, remain above the global average price of $1.33.
In its February 2024 Market Intelligence Report, the central bank shows that while Malawi Energy Regulatory Authority (Mera) maintained the retail pump prices, the cost of the commodity remained higher than in peer countries.
During the month under review, in neighboring Zambia, retail pump prices for petrol were raised to $1.47 from $1.10 per litre, while diesel rose to $1.39 per litre from $1.10 per litre.
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In South Africa, the petrol retail price increased to S$1.28 per litre from $1.28 during the previous month. The price of diesel also accelerated to $1.2 from $1.19 in January 2024.
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The retail pump prices for diesel and petrol dropped in Tanzania in the month under review as petrol pump price declined to $1.20 from $1.22 while diesel dropped from $1.22 to $1.19.
In Botswana, the retail pump prices for both petrol and diesel were maintained at $1.25 and $1.11, respectively, while in Rwanda, both petrol and diesel pump prices were lowered to $1.29 from $1.30, and to $1.29 from $1.30 in January 2024, respectively.
Malawi’s elevated fuel pump prices are attributed to a number of factors including high cost of ferrying the commodity from the sea.
Also, there are six levies in the fuel price build-up, which push the pump price up.
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In an interview Sunday, Consumers Association of Malawi Executive Director John Kapito cited high cost of transportation, local currency volatility and increased number of levies among reasons behind the comparatively higher prices of the commodity.
“A huge part of the price is made up of levies and that is a contributing factor because, comparatively, the landed price could be closer to other countries. I think we are loading so many things on fuel which we could have avoided,” Kapito said.
Malawi is spending about $600 million per year on fuel importation alone as consumption for diesel and petrol continues to rocket.
Recent figures from Mera show that, on average, Malawians use about 50 million litres of fuel a month, an equivalent of 600 million litres per year.
Per day, Malawians use about 845,000 litres of petrol and 834,000 litres of diesel. And to support this level of fuel importation, the country requires $600 million per annum.
