Malawi Fuel Pump Prices Up

The pump stations in Malawi are, of course without fuel, however, that has not stopped the Malawi energy Regulatory Authority from pushing up fuel pump prices.

Petrol price per litre has shot by 31 percent from K290.00 to K380.00 whereas diesel is now at K360.00 from K260.00 representing a 38 percent upward movement.

Paraffin which was selling at 155 kwacha, is now at 171 kwacha.

The hike is coming just hours after government issued a statement blaming profiteering in the fuel business on low official fuel prices which have resultantly encouraged “ illegal and shameful” black market fuel transactions.

Among others, MERA says the hike has been necessitated by the increasing prices of petroleum products on the international market and the recent devaluation of the kwacha in Malawi.

MERA says the fuel price adjustments are effective 8th November, 2011.

Meanwhile, the Malawi government has heaped blame for the scarcity of fuel in the country on black market dealers who are buying in jerry cans for resale at even higher prices.

The ministry of Natural Resources, Energy and Environment November 7 issued a statement arguing that Malawi had, in 15 days, imported over 16 million litres of should normally have normalized the fuel situation by now.

“…but despite these significant imports of fuel the situation has not improved; and queues of motorists continue unabated. This is due to huge fuel black market has emerged,” reads the statement in part.

The ministry argues that the said “unscrupulous people” cause confusion and disorder at pump stations when fuel is available as they demand priority service from attendants.

“The result is that the demand for fuel in the country has become artificially high compared with the demand in normal times. The large reservoirs of fuel that they store for resale at excessive prices cause this excess demand,” the ministry says.

Meanwhile, government says has instituted measures aimed at bringing order at pump stations in an effort to establish normality in the market which include police monitoring. – Zodiak Online