By: Staff Reporter
The Malawi Energy Regulatory Authority (MERA) says fuel prices in the country are better off than in other countries adding Malawi has maintained fuel prices with Petrol pegged at K1,150 per litre since October 2021 while other countries have hiked fuel prices several times.
MERA disclosed this at a time when there are numerous calls from trade and economic experts for the country to quickly adjust upwards price of petroleum products to much with both at regional and global fuel markets if the countrys economy is to be stable.
Speaking on Wednesday morning at the press briefing in Lilongwe MERA's Chief Executive Officer Henry Kachaje says even developed countries like United Kingdom Petrol price is at an equivalent of K3,000 per litre, South Africa at an equivalent K1,300 per litre, Zimbabwe at equivalent of over K2,000 per litre while in Zambia at an equivalent of K1,100 per litre.
Kachaje said this when minister of Energy Ibrahim Matola and Minister of Information Gospel Kazako faced the press, where it was also stressed that the major contributing factor to the rising fuel prices globally is the war in Ukraine.
However, commenting in a seperate interview a Malawian trade and economic expert based in Kenya, Yoas Nafitale hinted that Malawi government needs to quickly adjust fuel prices to align with global prices if it’s fragile economy is to be kept floating.
Nafitale who is a Regional Business Development Expert based in the Kenyan capital, Nairobi said it is a very big economic decision though tricky considering that fuel is a global product whose price automatically affect other global economic forces.
“The right thing to do now is to adjust prices upwards to align with the market forces as delays in doing so would mean that the importers will be incurring losses which may not sustain business undertaking,” Nafitale said.
He further stated that If the country has to cushion consumers, the focus should be on a threshold that should not create huge price disparities with neighbouring countries so that there is no unnecessary attraction of cross-boarder consumption from the neighbors that may lead to an abrupt upward surge in demand creating strain on local supplies.
Meanwhile, Head of the Centre for Human Rights and Rehabilitation, Michael Kaiyatsa says the rising prices of goods and services have brought the Tonse Government and president Lazarus Chakwera’s honeymoon to an abrupt end.
“I’m worried, we might see more people getting frustrated and going on to the streets,” said Kaiyatsa.
Commenting in parliament on the World and Regional economic outlook, Finance Minister, Sosten Gwengwe said consumer prices accelerated markedly during the 2021/2022 fiscal year mostly driven by an increase in food and fuel price.
“The price increase has been compounded by the ongoing Ukraine-Russia war that has sent all fuel prices to the roof, currently the economy is experiencing a rebound registering a meagre 3.9 percent driven by improved economic activities in a number of sectors including mining, quarrying, accommodation, food-services, transportation and construction ,” Gwengwe said.
Meanwhile, in neighbouring trading partners like Tanzania, motorists have been advised to brace for tougher times ahead as fuel prices across the country are set to hit a new record with effect from today Wednesday, April 06, 2022.
President Samia Suluhu Hassan did not mince any words when she told Tanzanians to prepare for tougher times ahead as far as fuel prices are concerned, and further cautioned the Minister for Energy, and other government leaders to tell the truth regarding the high cost of living that is about to hit the country, a burden which she said cannot be solely carried by the government.
Apart from fuel, Tanzanians just like Malawians are also feeling the pinch of skyrocketing prices of essential goods such as sugar and cooking oil.
An import-reliant and landlocked Malawi, where inflation is unstable the economy have expanded by about 2 percent despite high fuel and food prices bringing a clear political risk.
Already in recent months, thousands of Malawias have taken to the streets of major cities in protest at high prices.
Last year the IMF projected that Malawi’s gross foreign reserves will have declined to just over $400m by the start of 2022, or just enough to cover six weeks of imports.
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