Malawi Energy Regulatory Authority (Mera) owes petroleum importers K1.29 trillion in outstanding under-recoveries while unremitted levies to government institutions have now hit K593 billion. Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha told the media in Lilongwe yesterday that the arrears date back to 2022 when the Malawi Government abandoned the automatic pricing mechanism (APM) over- in determining fuel prices in favour of a fixed pricing regime. “The fixed pricing system meant Malawi ended up subsidising fuel for neighbouring countries,” he said.
Giving a breakdown, the minister said Mera owes State-owned National Oil Company of Malawi (Nocma) Limited K963 billion, Petroleum Importers Limited (PIL) K227.6 billion, Mount Meru Petroleum K15 billion, Simso Oil K4 billion and Pouma Jet K3.2 billion. He said the debts accumulated between 2022 and December 2025. He said: “With the recent adjustments [in the pump price], Mera will start recovering losses and begin paying petroleum importers.
Our priority is stabilising the economy, ensuring foreign exchange is available in banks, and reducing black-market activity, which will ultimately bring commodity prices down.” Mwanamvekha, who wa s accompanied by Cabinet colleagues Shadric Namalomba for Information and Communicat ions , Jean Mathanga of Energy and Mining and Jappie Mhango of Transport and Public Works, said Mera also owes government institutions K593 billion in unremitted levies. Further, Mera owes Malawi Revenue Authority K6.7 billion in carbon tax remittances, K31 billion road tax to Directorate of Road Traffic and Safety Services, K38 billion for the Reconstruction Levy introduced in the aftermath of the devastation caused by Cyclone Freddy, K6.3 billion for Energy Regulatory Levy, K39 billion finance charges and K21 billion distribution margin. Mwanamvekha cautioned that the timeline for clearing these debts depends on factors such as fuel consumption patterns, which may adjust following recent price increases.
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Taking her turn, Mathanga said the recent fuel price adjustments have aligned Malawi’s pump prices with regional levels, citing petrol at K4 211.20 per litre in Tanzania and K4 925.60 in Mozambique compared to K4 695 per litre in Malawi. She noted that previously, fuel prices were too low, thereby fuelling smuggling to neighbouring countries that led to a 30 percent loss of domestic fuel. “Discussions are ongoing with the Ministry of Justice and the Attorney General’s office on exiting the existing G2G contracts with Oman and the United Arab Emirates [UAE) with the UAE yet to deliver its supplies,” she said.
Chipping in, Mhango said his ministry is exploring innovative ways to maintain roads despite unremitted levies, emphasising the commitment to ensuring smooth mobility for Malawians. On Tuesday, Mera increased fuel prices by an average of 41.6 percent, petrol now costs K4 695 per litre, up from K3 499, while diesel is at K4 945, up from K3 500.
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