Malawi’s energy regulator on Tuesday announced a sharp increase in fuel prices, marking the second hike in four months, as authorities move to avert chronic shortages and conserve scarce foreign exchange.
The Malawi Energy Regulatory Authority said petrol prices were raised by nearly 42% to 4,965 kwacha ($2.90) per litre, while diesel climbed about 41% to 4,945 kwacha per litre.
The regulator said the decision was taken after prolonged underpricing of fuel in previous years discouraged imports and led to persistent supply disruptions.
It added that failure to adjust prices earlier meant fuel levies meant for road maintenance and rural electrification were not fully remitted.
President Peter Mutharika, who returned to power last year, is seeking to stabilise the donor-dependent southern African economy amid mounting fiscal and external pressures.
His government is negotiating a new support programme with the International Monetary Fund, restructuring debt and trying to rebuild dwindling foreign exchange reserves.
Fuel shortages under former president Lazarus Chakwera had been a major source of public frustration and economic disruption.
The regulator said artificially low prices also encouraged smuggling and arbitrage, further draining Malawi’s limited foreign currency resources.