Poor Malawians to suffer even more as fuels prices rise yet again
By Amalawi - Thu Oct 04, 8:36 am
Fuel prices have gone up again in Malawi. One litre of petrol is now selling at K570.20 up from K539, diesel K469.0 up from K434.30.The increase is likely to have reciprocal effects in all areas of the poor and stagnant economy.
Worse still pumps are likely to dry up in Malawi as the goverrnment struggles to pay money it owes to Oil Marketing Companies (OMC)
The increase, effective from today Thursday October 4, has been attributed to Automatic Pricing Mechanism (APM) which the current government of Joyce Banda adopted. DPP’s government of Bingu wa Muntharika was against automatic pricing
Paraffin, a commodity mostly used by the impoverished people from the rural areas remains at K171 per litre.
Malawi Energy Regulatory Authority (MERA) urged all filling stations “ to display pump prices being charged on clearly visible signage within their premises.”
MERA the fuel regulator said that it had considered recent trends in the world petroleum products prices and other macroeconomic fundamentals to raise the prices
“Since the last pump price revision of 7th September 2012, average FOB prices on the international market increased by 1.05% and 2.50% on diesel and paraffin respectively. During the same period average FOB prices for petrol slightly declined by 0.56 Mera said
Economic experts have said the fuel price increase would affect the transport sector as it will see increase in the cost of transporting people, retail goods and manufacture of products.
The economists have since warned that the increase of fuel prices will “attract an increase in inflation” and that it would affect all sectors of the economy.
Consumer Association of Malawi (CAMA) boss John Kapito has said consumers should brace themselves for a chain of price increases.
“The trend of rising fuel prices is most likely to have a ripple effect on the local economy as prices of other commodities have a tendency to follow suit,” he said.
Poor Malawians are suffering and they are likely to suffer for years to come, analysists are urging the government to rethink its policies on fuel pricing and not simply follow what the donors are demanding. Donors demanded and automatic fuel pricing a move which ensures that they get more for their money.