Malawi’s energy regulator has announced a sharp rise in fuel prices, with petrol and diesel increasing by more than 40%, marking the second major adjustment in just four months.
In a statement released on Tuesday, the Malawi Energy Regulatory Authority (Mera) said the fixed fuel pricing model used by the earlier administration had become unsustainable, resulting in heavy financial losses across the energy sector.
President Peter Mutharika, who returned to office last year, has been working to stabilise Malawi’s struggling economy. However, analysts and civil society groups warn that the latest fuel hike could undermine those efforts and place additional pressure on households already battling rising living costs.
“Fuel is not a luxury item. Any increase quickly spreads through the economy and drives up the cost of living,” the Human Rights Defenders Coalition said in response to the announcement.
Mera confirmed that diesel prices have been raised by 41.3%, while petrol prices have gone up by 41.9%. As a result, fuel costs have surged dramatically since October, with petrol prices now nearly doubling and diesel prices climbing by about 80%.
Fuel shortages, which had previously caused long queues at filling stations and widespread frustration among motorists, have eased in recent months, with supply improving noticeably across the country.
According to Mera, Malawi has now adopted an automatic fuel pricing mechanism, allowing prices to fluctuate based on international shipping and supply costs rather than remaining fixed.
The impact of the price hike is already being felt, with transport fares rising sharply in many areas. Prices of essential goods and services, including food, are also expected to increase in the coming weeks.
Inflationary pressures had already begun to mount following an earlier fuel price adjustment in October and a recent increase in sales tax.
Mera’s acting chief executive officer, Dad Chinthambi, said the decision was necessary to guarantee a steady fuel supply, maintain electricity services, and ensure proper funding for road maintenance and rural electrification projects.
Meanwhile, the government is seeking to strengthen public finances and is in talks to secure a new support package from the International Monetary Fund.
Public reaction has been largely negative, with many Malawians expressing frustration on social media and radio phone-in programmes. Some say they had hoped the current administration would ease economic hardship rather than repeat policies that worsen daily living conditions.