By Suleman Chitera
The Competition and Fair Trading Commission (CFTC) has issued a stern warning to traders and service providers against imposing unjustified price increases following the recent 42 percent fuel price hike, cautioning that such practices amount to illegal overcharging.
Speaking in an interview, CFTC spokesperson Innocent Helema said the Commission recognises that the sharp rise in fuel prices will inevitably affect business operating costs, but stressed that this does not give traders blanket authority to raise prices arbitrarily.
“Fuel has gone up by 42 percent, but that does not mean prices of goods and services should also go up by 42 percent,” Helema said. “That is stealing. That is overcharging.”
Helema explained that unjustified price hikes contravene Section 51(q) of the Competition and Fair Trading Act, which prohibits overcharging consumers. He warned that traders found in violation of the law face sanctions, including fines and the possible revocation of trading licences.
The Commission has since called on consumers to be vigilant and report businesses that impose what it described as unrealistic or exploitative price increases.
“We encourage Malawians to inform the Commission whenever they suspect unjustified price increases. These reports will assist us to take appropriate enforcement action,” Helema said.
However, the warning has also raised questions about enforcement, particularly how the Commission will distinguish between reasonable and unreasonable price adjustments across different sectors. Businesses are affected by fuel costs in varying ways, depending on factors such as transportation, production, and energy usage.
So far, the CFTC has not provided a clear formula or benchmark for determining acceptable price increments, a gap that has prompted concern among both traders and consumers about how the regulations will be applied in practice.
Despite the uncertainty, the Commission insists it will act decisively to protect consumers from exploitation in the wake of the fuel price increase, signalling tougher scrutiny of pricing behaviour across the market.
