Cooking oil prices to continue rising in Malawi

Oilseeds Producers and Processors Association (OPPA) has expressed doubt if the removal of 16.5 percent Value Added Tax on cooking oil will immediately result in cooking oil prices reduction.

While commending government for the move, OPPA president Peter Ngoma argues VAT was just among many factors which led to increase in cooking oil prices such as the rise in global prices of raw materials and shipping costs.

He added that in the case of Malawi, this was exacerbated by the scarcity of foreign exchange especially the dollar.

Ngoma said while the cushioning to consumers cannot be underestimated, if prices of raw materials remain high and foreign currency remains scarce, the removal of VAT may be overtaken.

Meanwhile, Ministry of Finance spokesperson Williams Banda has said as much as there are other factors that led to a rise in prices of cooking oil, the country was made to believe that VAT was the main factor, therefore government and all Malawians expect cooking oil prices to go down.