By Suleman Chitera
The Ministry of Energy has attributed the recent increase in fuel prices to escalating geopolitical tensions in the Middle East, particularly involving Iran, which have disrupted global oil supply chains.
Minister of Energy, Jean Mathanga, made the remarks in Parliament while presenting a comprehensive explanation of the factors behind the latest fuel price adjustment announced by the Malawi Energy Regulatory Authority (MERA).
Mathanga said the situation has been worsened by the closure of the Strait of Hormuz, a critical global shipping route for oil. He explained that the disruption has significantly affected the movement of fuel, leading to shortages across many parts of the world.
“Malawi, like many other countries, depends on this route for fuel imports. The current situation has created supply challenges that are beyond our control,” said Mathanga.
According to the minister, more than 100 countries are currently experiencing fuel shortages due to the ongoing crisis, which has in turn pushed global fuel prices upward. As a result, Malawi has had no option but to adjust local fuel prices in line with international market trends.
Mathanga further noted that domestic economic challenges are compounding the situation. He highlighted the persistent shortage of foreign exchange as a major factor affecting fuel imports, pointing out that illegal forex trading—where currency is sold at rates higher than the official government rate—has worsened the problem.
“The mismatch between official and parallel market exchange rates is negatively affecting our ability to secure adequate foreign currency for fuel procurement,” he said.
In an effort to manage the crisis, the government has introduced a fuel levy of K350 per litre. The minister explained that the levy is aimed at helping the country service a substantial fuel-related debt, currently estimated at K1.2 trillion.
While acknowledging the burden the price increase places on Malawians, Mathanga emphasized that the government is navigating a complex global and domestic economic environment, and continues to explore measures to stabilize the situation.
The development comes amid growing concern from citizens and stakeholders over the rising cost of living, as fuel prices remain a key driver of inflation in the country.
