Kwacha fall forces fuel hike
Free fall of the country’s currency, kwacha, against United States dollar has forced Malawi Energy Regulatory Authority (Mera) to increase the pump price for fuel in the country.
Malawi kwacha is trading at K495 against a dollar, prompting an increase of the fuel prices by six percent.
In an announcement on Friday, Mera cited the movement of international oil prices, exchange rate of the kwacha to the dollar and other macro-economic fundamentals.
The price of petrol has jumped to K856.70 per litre from K786, diesel is now selling at K865.90 while paraffin is at K756.10.
“Malawi Energy Revenue Authority (Mera) has resolved that maximum pump price for petrol, diesel and paraffin be revised upwards effective November 8 2014,” reads the statement.
Executive director of the Consumers Association of Malawi (Cama) John Kapito expressed worry with the increase of prices of commodities “that has been silently going on in the country” following the weakening of the kwacha.
He said the increase of fuel prices will also prompt increase of prices for other items.
“What is more worrying is government’s failure to explain to Malawians why the kwacha is falling uncontrollably and what mitigation measures it is putting in place,” he said.
He said with the current prices going up, it would not be surprising to see people reacting, saying government needs to come out to explain what is going on.
