The Consumers Association of Malawi (Cama) Executive Director John Kapito has said that President Lazarus Chakwera’s turning down of a 30 percent fuel price hike proposal by the Malawi Energy Regulatory Authority (Mera) is a sign of a person who is ‘living in denial’.
He wondered why Chakwera is failing to accept that prevailing fuel prices are far below the buying price.
This followed an announcement by State House that Chakwera rejected a proposed increase in the pump price of fuel by over 30 percent as proposed by agencies involved in the procurement and supply of fuel.
“Mera made their recommendations to hike fuel prices based on the economic realities on the been ground. We have making similar calls based on the same.
“I don’t know what the President is basing his decisions on. But definitely it’s not economics; maybe politics, being an election year. When fuel is not available, people being forced to pay more money, in some cases as high as K10,000 per litre.
“So, which is better. To be paying about K3,500 per litre for fuel which is readily available or to be paying K10,000 per litre for fuel on the black market?” Kapito told The Daily Times.
Mera last hiked the price of fuel on November 10 2023, a development that saw the price of a litre of diesel moving up from K1,930 to K.2,734 and that of petrol of similar quantity going up from K1,746 to K2.530.
The price of a litre of paraffin was hiked from K1,261 to K1,910.
In August last year, the Committee on Natural Resources and Climate Change in Parliament chairperson Werani Chilenga called on the Mera to hike fuel prices.
Chilenda said the recommendation was reached at after observing that Mera is selling fuel at cheap prices compared to landing costs.
However, he was quick to advise the body to make sure that there is fuel stability in the country.
However, the main opposition Democratic Progressive Party (DPP) through Presidential Spokesperson and National Publicity Secretary Shadric Namalomba rejected the proposal.
In a statement, Namalomba, who is also a member of the committee together with his fellow DPP membersSymon Vuwa Kaunda, Orphan Shaba and Joseph Nomale, said the timing is poor as a lot of Malawians a going through economic problems.
“The current cost of living in Malawi is already unbearable for many. Basic goods such as salt, food, and school fees are already beyond the reach of many Malawians. A further increase in fuel prices will only exacerbate the situation, pushing more people into poverty. As a nation where 7 out of 10 people live in abject poverty, with many unable to earn even MK3500 a day, this is simply unacceptable.
“Transport costs, which are essential for economic growth, will inevitably rise. This means that not only will individuals struggle to afford their daily commute, but businesses will also suffer as they try to keep up with the increased costs.
“On top of that, school fees will also go up, making it harder for parents to provide education for their children. All the while, salaries will remain stagnant, leaving people with less and less to live on. How can we expect our people to survive when their purchasing power is continuously eroded?
“As a country heavily dependent on agriculture, with this sector contributing over 30% of our GDP and employing over 80% of the population, the proposed fuel price increase will have a severe impact on the farming community. The price of fertilizer will skyrocket, with suppliers demanding over MK150,000 for a 50 kg bag. How can our farmers afford this? How will they be able to produce enough food to feed the nation?” he said
