Govt sticks to levies amid fuel price hike backlash

Malawi Government has stuck to fuel levies in the fuel price build-up amid increasing calls from opposition parties, civil society organisations (CSOs) and economists to suspend or revise them following Wednesday’s 34 percent price increase. Effective April 1, the Malawi Energy Regulatory Authority (Mera) raised petrol to K6 672 per litre and diesel to K6 687, an increase of about 34 percent, citing rising Free on Board costs and in-transit expenses on the global market. While Mera and the Ministry of Energy and Mining have framed the adjustment as unavoidable, critics argue that the State has chosen fiscal rigidity over social cushioning.

At the centre of the dispute is government’s refusal to trim fuel levies, which now account for roughly 28 to 33 percent of pump prices. These include a K521 road maintenance levy, K207 rural electrification levy, K350 under-recovery levy and K168.77 price stabilisation levy, alongside excise and import duties—together forming a significant share of the final price borne by consumers. Yesterday, Minister of Energy and Mining Jean Mathanga defended the levies in Parliament, arguing that the road levy, rural electrification levy and under-recovery charge are essential for financing roads, expanding electricity access and settling arrears owed to fuel suppliers.

She warned that rolling them back would undermine road rehabilitation and long-term energy investments. The minister allayed concerns that the country may be running out of fuel, noting that the country still has 798 litres of petrol, equivalent to 17.83 days worth of supply, and 1 918 000 litres of diesel, which covers 27.78 days. Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha echoed the position, framing the issue as a fiscal constraint rather than a policy choice.

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“We are in a crisis,” he said, signalling limited room for immediate relief despite mounting public pressure. But the explanations have done little to quell dissent. Leader of Opposition in Parliament Simplex Chithyola Banda challenged the government’s position in Parliament yesterday, warning that Malawi now ranks among countries with the highest fuel prices globally and cautioning that without intervention, the ripple effects on transport and commodity prices will be severe.

Opposition parties, notably the Malawi Congress Party (MCP), UTM Party and United Democratic Front (UDF), have taken a similar line, accusing government of transferring the full weight of global shocks onto citizens. In an interview, MCP spokesperson Jessie Kabwila warned the hike would deepen hardship and limit access to essential services. On his part, UTM Party secretary general Willet Kalonga said the move reflects weak economic management.

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