Fuel price adjustment to stabilize transport industry – TAM

As Malawians grapple with yet another sharp rise in fuel prices, transporters say the adjustment will help stabilize the struggling transport industry, benefiting wet cargo operators while raising serious concerns for dry cargo transporters whose operating costs are set to surge.

This comes on an upward adjustment of fuel prices, effective Tuesday, January 20, 2026 as announced by the Malawi Energy Regulatory Authority (MERA). The adjustment has seen petrol prices jumping by 41.90 percent, from K3,499.00 per litre to K4,965.00, while diesel has increased by 41.29 percent, from K3,500.00 per litre to K4,945.00.

Commenting on the matter, Transporters Association of Malawi (TAM) has welcomed the latest fuel price increase, saying the move, though painful for consumers, is a necessary step to bring balance to an industry that has been operating under heavy strain, with both wet and dry cargo operators affected in different ways.

TAM spokesperson Frank Banda said the association recognizes the impact of the adjustment on ordinary Malawians but noted that fuel had been sold at a loss for months due to rising import costs from Tanzania and Mozambique.

“The Transporters Association of Malawi acknowledges the recent fuel price increase, recognizing its impact on Malawians. We appreciate the government’s decision to adjust prices, considering fuel was previously sold at a loss due to higher import costs from Tanzania and Mozambique. This move will help stabilize the industry, particularly for wet cargo transporters who incurred losses due to the price disparity,” said Banda.

However, Banda cautioned that the adjustment brings fresh pressure on dry cargo transporters, whose operating costs are expected to rise sharply following the increase.

“We urge the government to revisit rates for dry cargo transporters, who will be significantly affected by this increase, to ensure the sustainability of their businesses,” he added.

Addressing the media in Lilongwe, MERA Acting Chief Executive Officer Dad Chinthambi said the latest fuel price changes are a result of the reactivation of the Automatic Pricing Mechanism (APM), which triggers a review when major cost components move by more than five percent.

He conceded that the adjustment comes at a challenging time for many Malawians due to prevailing economic pressures, but stressed that the increase was inevitable under the APM system.

Chinthambi noted that keeping fuel prices unchanged for the past three years significantly contributed to the sharp rise, adding that smaller, phased increases would have helped cushion consumers from the shock.

MERA also pointed out that extended periods of low pricing led to fuel shortages, substantial financial losses for importers, and delays in the collection of statutory levies such as the Road Levy and the Rural Electrification Levy.

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