Malawi’s energy regulator increased the prices of petrol and diesel on Tuesday for the second time in four months, saying the move was necessary to prevent fuel shortages and protect the country’s limited foreign exchange reserves.
According to Reuters, the Malawi Energy Regulatory Authority said in a statement that the price of petrol rose by nearly 42% to 4,965 kwacha, or about $2.90, per litre, while diesel prices were increased by roughly 41% to 4,945 kwacha per litre.
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President Peter Mutharika, who returned to power last year, is seeking to reverse the economic decline of the donor-dependent Southern African nation.
His administration is working to secure a new support programme from the International Monetary Fund, restructure public debt, and rebuild dwindling international reserves as part of broader economic recovery efforts.
Fuel shortages during the previous administration of Lazarus Chakwera were a major source of public frustration.
According to the regulator, fuel prices were not raised when required under Chakwera’s government, resulting in insufficient fuel imports and the failure to remit levies meant to fund road maintenance and rural electrification.
The authority added that artificially low fuel prices encouraged arbitrage by smugglers, which drained Malawi’s foreign exchange resources.
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Image Credit: Reuters
