Malawi’s energy regulator hiked the price of petrol and diesel for the second time in four months on Tuesday to prevent fuel shortages and preserve scarce foreign exchange.
The cost of petrol was hiked by almost 42% to 4,965 kwacha ($2.90) per litre, while diesel was increased by about 41% to 4,945 kwacha per litre, the Malawi Energy Regulatory Authority said in a statement.
President Peter Mutharika, who returned to power last year, is trying to turn around the economic fortunes of the donor-dependent Southern African country. His government is also trying to negotiate a new support programme from the International Monetary Fund, restructure its debt and boost dwindling international reserves as part of turnaround efforts.
Fuel shortages under his predecessor Lazarus Chakwera, were a major source of public frustration.
The regulator said fuel prices had not been adjusted upwards as they should have under Chakwera’s government, which meant insufficient fuel was imported, and levies to maintain roads and electrify rural areas were not remitted.
Artificial fuel prices created arbitrage opportunities for smugglers, depleting the country’s foreign exchange resources, it said.
