Malawi Energy Regulatory Authority (MERA) has raised petrol and diesel prices by over 41 percent and approved a 12 percent increase in electricity tariffs, citing rising import costs, market distortions, and the need to fund essential levies.
At a press briefing in Lilongwe, MERA Acting CEO Dad Chinthambi said the price adjustments follow the reactivation of the Automatic Pricing Mechanism (APM), which mandates reviews whenever key cost factors shift by more than five percent.
Petrol now sells at K4,965 per litre, up from K3,499, while diesel has risen to K4,945 per litre from K3,500.
Chinthambi acknowledged the hike was difficult given the countryรขยยs economic hardships but said it was unavoidable under the APM framework.
He explained that the previous three years of fixed pricing contributed to the steep increase, noting that gradual, incremental adjustments could have reduced the impact.
MERA also highlighted that prolonged low prices led to fuel shortages, heavy losses for importers, and delays in statutory levies such as the Road Levy and Rural Electrification Levy.
In electricity, MERA approved a 12 percent tariff increase for the Electricity Supply Corporation of Malawi (ESCOM), marking the third tranche of a 50.8 percent base tariff approved in 2023.
ESCOM is required to submit a schedule for the new charges across all customer categories.
Chinthambi added that Malawiรขยยs reliance on imported fuel and electricity, combined with currency fluctuations and market distortions such as cross-border fuel trade, made the adjustments necessary to reflect true costs and stabilize supply.
MERA emphasized that the adjustments aim to ensure sustainable fuel supply, electricity services, and the proper remittance of levies to support road maintenance and rural electrification projects, while gradually correcting past pricing imbalances.
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