On Wednesday, Werani Chilenga, chairperson of the Committee on Natural Resources and Climate Change in Parliament, presented a report to the National Assembly recommending a reasonable increase in fuel prices to ensure sustainability.
The committee concluded this after observing that the Malawi Energy Regulatory Authority (MERA) was selling fuel below recommended prices.
During the parliamentary debate, the opposition Democratic Progressive Party (DPP), led by George Chaponda, staged a walkout in protest, claiming they were not given a chance to speak, despite some DPP members and others having already participated.
Chilenga expressed anger over the walkout, asserting it was politically motivated.
He stated that the DPP aims to create a fuel shortage in order to undermine the current leadership during the 2025 general elections. Chilenga urged them to refrain from exploiting the issue for political gain.
“The committee is not a political tool of Parliament; we are here to provide oversight. However, some members have chosen to politicize the issue for their own reasons. They deliberately walked out of the house to oppose fuel adjustments, hoping the country will run out of fuel so they can claim the government has failed,” he said.
Ironically, the DPP has a significant presence on the committee, with members such as spokesperson Shadreck Namalomba, Symon Vuwa Kaunda, Orphan Shaba, and Joseph Nomale participating in the investigation and recommendations.
Consumers Association of Malawi (CAMA) executive director John Kapito backed the adjustment of the fuel prices to avoid unnecessary impending fuel scarcities that will hurt both the sonsumer and the whole economy.
“It has been noted that for a long time MERA has been holding the fuel price increases in the country which has resulted in the accumulation of heavy losses by the Petroleum/Oil Importers. The current losses suffered by the Petroleum importers are unsustainable and continue to challenge the continued importation of fuel in the country.
“Price increases of petroleum products negatively affect Consumers because of its price trigger effect on other goods and service, however, when this is weighed against the scarcity of fuel on the market and its negative effects CAMA believes that the effects of regulated higher prices are a better devil than fuel scarcities.
“The reasons behind the high current fuel price increase is as a result of the decision by the International Monetary Fund (IMF) to devalue the kwacha and a weaker kwacha will continue to trigger price increases especially on strategic commodities like fuel.
“MERA’s mandate is to regulate and not to control prices of fuel and that prices of fuel must never be politicized and MERA should maintain its independence and refrain from creating unnecessary challenges to both consumers and fuel importers any consequences as a result of holding the prices will hurt the Consumer more, it is therefore economically unsustainable to continue with lower prices that are below cost and accumulating the huge losses whose debt will have to be paid by the Consumer,” he said
Kapito said the scarcities of fuel as noted before have serious negative economic and social effects on consumers and the economy as fuel is only found on the black market at double the regulated pump prices and critical services are disrupted such as distribution of goods and services and movement of people.
“The health sector is heavily affected as ambulances are unable to operate, goods and services become expensive because of high prices of transportation and both small scale and big industries stop their operations,” he said
Mzuzu University-based economist Christopher Mbukwa said: “I see a case of a pricing structure that is sub-optimal, that is, it is not reflecting reality as such it is working against some players; hence, they are not willing to respect it.”
On his part, finance and aconomic governance analyst Dalitso Kubalasa told the media that effective application of the APM is the most sustainable path—urged a balanced approach to protect interests of both importers and consumers.
Mera consumer affairs and public relations manager Fitina Khonje yesterday said Cama’s calls were based on factual analysis of the situation, but the Mera board has always been monitoring the situation and will make an announcement at the right time.
