By Burnett Munthali
In a critical development, Malawi is set to see fuel prices rise above K3,000 per litre. This dramatic increase comes as the country faces a severe fuel crisis, with reserves expected to be exhausted by next Monday if immediate action is not taken.
The crisis has been exacerbated by the depletion of the fuel stabilization fund, which was in excess of hundreds of billions when the current administration, led by President Lazarus Chakwera and the Malawi Congress Party (MCP), assumed power from former President Professor Arthur Peter Mutharika. The fund, initially established under the Democratic Progressive Party (DPP) government, was designed to cushion consumers against fuel price fluctuations by covering additional costs incurred by importers.
The National Oil Company of Malawi (NOCMA) has issued an alarming report to the Office of the President and Cabinet, indicating that the country’s fuel supply will last for only four more days. The report has sparked a state of panic within the MCP, leading them to engage John Kapito of the Consumers Association of Malawi and Welani Chilenga, Chairperson of the Parliamentary Committee on Natural Resources. Their role is to advocate for a fuel price hike, strategically distancing President Chakwera from the controversial decision.
It is anticipated that the Malawi Energy Regulatory Authority (MERA) will soon announce the price hike. However, the announcement is expected to be timed around President Chakwera’s scheduled trip to China, to avoid direct political backlash.
The depletion of the fuel stabilization fund under the current administration has led to a situation where the government must now address the imminent fuel shortage and the associated price increase, highlighting the challenges faced by the outgoing regime in managing the nation’s energy security
