By Suleman Chitera

Malawi Energy Regulatory Authority (MERA) has announced a significant reduction in fuel prices following the application of the Price Stabilisation Fund (PSF) and the Automatic Pricing Mechanism (APM) aimed at protecting Malawians from the impact of volatile global oil prices.

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Speaking during a press briefing in Lilongwe on Friday, MERA Chief Executive Officer Dad Chinthambi said the authority is using the PSF to absorb excess fuel importation costs whenever international prices rise sharply, thereby cushioning consumers and businesses from sudden price hikes.

According to MERA, the latest fuel review has resulted in a 6.94 percent reduction in the pump price of petrol and a 1.96 percent reduction in kerosene prices, while diesel and other fuel products will maintain their current prices.

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Chinthambi explained that the Automatic Pricing Mechanism (APM) remains a transparent system used to adjust fuel prices based on international oil market movements, exchange rate fluctuations, importation costs, and other economic factors.

“MERA’s mandate is to ensure fair and stable fuel pricing,” said Chinthambi. “Through the PSF and the APM, we are working to reduce the impact of volatile international oil prices on Malawian households and businesses while maintaining transparency in how prices are set.”

The development comes at a time when many countries across the world are experiencing rising fuel costs due to global economic instability and increasing crude oil prices on the international market.

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Economic analysts say the intervention by MERA is expected to provide temporary relief to transport operators, businesses, and ordinary Malawians who have been struggling with the high cost of living and rising commodity prices.

MERA, however, said fuel prices will continue to be monitored closely and adjusted depending on global fuel market trends, exchange rate movements, and the sustainability of the Price Stabilisation Fund.

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The authority did not indicate how long the stabilization measures will remain in effect but reaffirmed its commitment to ensuring stability and fairness in Malawi’s energy sector.