Malawi now has the highest fuel prices on the African continent, following a sharp 41 percent hike announced by the Malawi Energy Regulatory Authority (MERA) on Monday.
The adjustment has pushed the price of petrol to K4,965 (or $2.84) per litre and that of diesel to K4,945 (or $2.83), overtaking regional peers and triggering widespread concern among motorists and consumer advocates.
Data from www. globalpetrolprices.com confirms Malawi’s new petrol prices are the highest in Africa, surpassing the Central African Republic, at $1.87, representing a difference of $0.97 per litre.
Senegal has the third highest prices, at $1.63, followed by Zimbabwe at $1.57 per litre.
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In neighbouring Zambia, the price of petrol is $1.50 per litre while in Mozambique, the price is $1.30.
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A litre of petrol is fetching $1.10 in Tanzania.
Libya has the lowest prices, at $0.026 per litre.
The average price across most African countries remains below $0.10 per litre.
In a statement announcing the change, Mera Board Chairperson Lucas Kondowe said the increase was necessitated by the Automatic Pricing Mechanism (APM), which had been suspended for three years.
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“The landed cost of fuel rose beyond the ±5 percent threshold, compelling us to act. The reintroduction of APM was aimed at restoring sustainability in fuel pricing amid global volatility,” Kondowe said.
In an earlier interview, Consumers Association of Malawi (Cama) Executive Director John Kapito warned that the hike would have ripple effects on transport, food and other essential services.
“This is a brutal blow to struggling households. We are seeing a cost-of-living crisis deepen and Mera’s decision lacks empathy and foresight,” Kapito said.
The Economist Intelligence Unit (EIU) has projected further inflationary pressure for Malawi, citing fuel as a key driver.
“Malawi’s import-dependent economy is vulnerable to global price shocks. Without forex buffers, fuel costs will continue to rise,” the EIU notes in its January 2026 Africa Outlook paper.
Economics Association of Malawi (Ecama) President Bertha Chikadza said the fuel price hike was both a symptom and signal of deeper economic pressures that were facing the country.
“Fuel is a key input across almost all economic sectors: transport, agriculture, manufacturing, and services; so, an increase immediately raises production and distribution costs.
“In the short term, this will lead to inflation and slow economic activity. In the medium term, it can weaken competitiveness, reduce disposable incomes and place additional strain on already vulnerable businesses and households,” Chikadza said.
Economist Marvin Banda said the government should present its Economic Recovery Plan as there seems to be incoherent policy implementation.
He said the fuel price should become more transparent and should be adjusted by an independent Mera.
“The urban poor and the rural poor will be hit the hardest by inflation due to income inequality and transport-related costs because rural producers and suppliers lose margins and thus increase costs,” Banda said.
