Malawi Records Second Major Fuel Price Increase in Four Months

Malawi has recorded a second major increase in petrol and diesel prices within four months, raising concerns about rising living costs and broader economic pressures.

The Malawi Energy Regulatory Authority (MERA) announced on Tuesday that fuel prices had been adjusted upward by more than 40 percent, citing changes to the country’s fuel pricing framework. Under the new rates, petrol prices have risen by 41.9 percent, while diesel prices increased by 41.3 percent.

MERA said the adjustment followed the abandonment of the previous administration’s fixed pricing system, which it described as financially unsustainable and responsible for significant losses within the energy sector. The regulator explained that Malawi has now adopted an automatic pricing mechanism that aligns pump prices with fuel import costs.

The latest adjustment has driven fuel costs significantly higher since President Peter Mutharika resumed office in October, with cumulative increases of nearly double for petrol and around four-fifths for diesel during that time.

Authorities say the price changes are part of broader efforts to steady the economy and restore confidence among investors. Economic observers, however, caution that escalating fuel costs could weaken those efforts by driving up transport charges and contributing to rising food prices.

During the previous administration of Lazarus Chakwera, fuel scarcity was a recurring problem, forcing motorists to endure prolonged queues at service stations. While supply conditions have improved in recent months, the revised pricing system is already having ripple effects across the economy. Public transport operators moved quickly to raise fares following the announcement, heightening concerns about growing cost-of-living pressures on households.