MERA Triggers APM to Hike Fuel Prices by 40% as Petrol Nears K5,000

Malawian motorists have woken up to a massive spike in travel costs after the Malawi Energy Regulatory Authority (MERA) adjusted fuel prices upward by over 40 percent, effective today, January 20, 2026.

The price of petrol has surged to K4,965 per litre, up from K3,499, while diesel is now selling at K4,945 per litre, compared to the previous K3,500.

MERA Board Chairperson Lucas Kondowe confirmed that the decision was driven by the Automatic Pricing Mechanism (APM). This system triggers a price review whenever the landed cost of fuel moves beyond a ±5 percent threshold. According to the authority, the rising costs of importing fuel in January 2026 reached a point where the previous prices were no longer sustainable.

This is the second major hike in recent months, following a 33 percent increase in October 2025. Economists warn that the 40% jump will have a ripple effect on the entire economy, as transport operators and manufacturers prepare to pass the increased costs on to consumers.

The sharp adjustment is intended to ensure that fuel remains available at pumps across the country by allowing importers to recover their costs. However, for many Malawians, the move represents a significant strain on an already stretched household budget.