Finance Minister Goodall Gondwe told Parliament on Thursday that there was need to increase fuel pump prices to avoid shortages.
On Wednesday, the Malawi Energy Regulatory Authority (MERA) adjusted prices upwards. Petro is now selling at K990.30, Diesel at K990.40 and Paraffin at K785 per litre.
The hike follows another in September this year.
Meanwhile, the public is demanding an explanation on the use of the price stabilisation fund. The fund is used to mitigate impact of global fuel price hike on the local market.