Fuel hike squeezes households as transport costs increase

When Cynthia Ngwira orders bananas from Tanzania, she now factors in a new, painful cost: transport. The seasonal seller in Mzuzu says higher fares have wiped out her margins and driven customers to cheaper, locally grown alternatives. “My business is seasonal.

We cannot raise prices because we will not sell,” she says. The Malawi Energy Regulatory Authority (Mera) on Wednesday announced steep increases across fuel types after recent disruptions in the Strait of Hormuz, a key global shipping route. The regulator raised petrol by 34 percent (from K4 965 to K6 672 per litre), diesel by 35percent (from K4 945 to K6 687) and kerosene by 82 percent (from K3 200 to K5 824).

Jet A‑1 prices at Kamuzu International Airport jumped to K5 439 (a 79 percent rise), while at Bakili Muluzi International Airport the price rose to K5 423 (an 81percent increase). This is the second major adjustment in four months, following a 41 percent hike in January and a 33 percent rise in October, a cumulative increase of roughly 108 percent over eight months. As Ngwira complains about the fuel hike, transport costs have been high as the bananas which come from Tanzania reflect the increased prices.

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“I am not really making profit from this business. The transport costs are really prohibitive. At the moment, people have alternatives of consuming pumpkins, groundnuts and other locally grown crops that are ready for consumption now,” said Ngwira.

Owen Lungu, a hawker based in the same city said transport costs for local travel within the city have doubled with a route that he used to pay K5 000 for now costing K10 000. Lungu, who orders rice from Karonga, said transport fares have been prohibitive to the growth of his business with transport costs now taking the biggest share of his expenses. In Lilongwe, Austin Masanjala, a real estate agent said transport fares in the city are unaffordable.

He said fares for both motorcycle taxis, which he considers convenient and buses, have almost doubled and are eating into his business and he is walking some distances. Masanjala said a route from Area 25, where he stays, to Old Town is now pegged at K5 000, up from K3 500, translating into K200 000 in a month for transport alone while motorcycle taxis which he used to pay around K7 000, are now charging K12 000. “With the high transport costs, almost every basic commodity has also soared.

My business demands daily travelling around the city. Transport fares are taking a toll on my income,” he said. Spot checks by Nation on Sunday show routes with intercity bus fares increasing by between K30 000 and K60 000. Fares between Mzuzu and Blantyre, initially pegged at K110 000 are now between K140 000 and K180 000.

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