LILONGWE, Jan. 20 (Xinhua) -- A sharp increase in fuel prices announced by the Malawi Energy Regulatory Authority (MERA) on Monday has triggered public concern, with many Malawians warning that higher costs will push up prices of basic goods and services.
Under the new pricing structure, petrol prices rose from the equivalent of 2.02 U.S. dollars to 2.86 dollars per liter, representing an increase of 41.6 percent, while diesel prices climbed from 2.02 dollars to 2.85 dollars per liter, up by 41.1 percent.
MERA Board Chairperson Lucas Kondowe said in a statement that the adjustments followed the reintroduction of the Automatic Pricing Mechanism, which had been suspended for the past three years in favor of a fixed pricing system.
Kondowe described the fixed pricing regime as "commercially unsustainable," citing significant trading losses and an inability to import adequate petroleum products as key challenges.
The fuel price hike has drawn criticism from consumer groups.
John Kapito, executive director of the Consumers Association of Malawi, called the adjustment "economic violence" and urged the government to protect citizens from the shock of rising fuel costs.
Offering a different perspective, Malawian economist Velli Nyirongo told Xinhua in a written response that the fuel price increase represents a market correction rather than a discretionary policy decision.
Nyirongo said that while the adjustment could help stabilize fuel supply, the move risks "entrenching economic fragility" if it is not accompanied by deeper structural reforms to support sustainable growth.
Nevertheless, he cautioned that higher fuel prices would "feed directly into inflation, raising transport, food, and production costs across the economy," disproportionately affecting households and small businesses and increasing poverty risks.
According to the economist, durable solutions require complementary reforms, including short-term mitigation measures to cushion vulnerable households and critical supply chains from sudden price shocks.
He also stressed the need for Malawi to strengthen export performance, improve foreign exchange availability, and accelerate investment in renewable energy and more efficient transport systems.
