Malawi’s energy regulator raised petrol and diesel prices sharply Tuesday to prevent shortages and protect scarce foreign exchange reserves. Petrol jumped nearly 42% to 4,965 kwacha ($2.90) per litre, while diesel surged about 41% to 4,945 kwacha per litre, the authority announced.
President Peter Mutharika, back in power since last year, is seeking to revive Malawi’s donor-dependent economy and restore public confidence. His government is negotiating a new IMF support programme, restructuring debt, and attempting to rebuild dwindling international reserves amid fiscal pressures.
Fuel shortages under Mutharika’s predecessor, Lazarus Chakwera, sparked public frustration, leaving citizens queuing at pumps and businesses struggling to operate. The regulator blamed past price controls for discouraging sufficient imports and limiting levies for road maintenance and rural electrification.
Artificially low fuel prices created opportunities for smugglers, further depleting the country’s precious foreign exchange, the authority said in a statement. Officials say the new rates reflect the true cost of fuel, aiming to stabilise supply while funding infrastructure and energy projects.
The move comes as Malawi faces growing economic challenges, with inflation pressures and rising global fuel costs affecting households and businesses alike. Citizens may feel the impact immediately at pumps, yet authorities stress the hike is vital to secure the country’s energy and financial stability.