Minister of Energy and Mining, Dr. Jean Mathanga, has defended the recent 34 percent increase in fuel prices, stating that the adjustment was necessary to reflect actual import costs and protect the country’s economy from long-term distortions.
Speaking in Parliament on Thursday during a presentation on Malawi’s energy situation, Mathanga warned that delaying price adjustments would have worsened the situation, potentially leading to severe fuel shortages.
She revealed that postponing fuel price changes over the past four years has resulted in importers accumulating arrears amounting to approximately K1.2 trillion, a development she described as “disastrous” to the national economy.
On the domestic front, the minister highlighted that Malawi spends about $600 million annually on fuel imports, a burden that continues to strain the country’s already limited foreign exchange reserves. She stressed that aligning local fuel prices with global market trends is essential to ensure adequate resources for fuel procurement.
Mathanga also cited several internal challenges contributing to the crisis, including Malawi’s landlocked position, exchange rate imbalances, and persistent shortages of foreign currency.
During a press briefing held in Lilongwe later in the day, the minister addressed the nation, emphasizing that the fuel price increase was unavoidable due to a combination of global and domestic pressures.
She pointed to ongoing conflict in the Middle East and disruptions in critical supply routes such as the Strait of Hormuz—through which roughly 20 percent of the world’s oil supply passes—as key drivers behind the surge in global fuel prices.
According to Mathanga, global fuel prices have risen by up to 40 percent, affecting more than 100 countries, including Malawi. She noted that import-dependent economies are facing increasing difficulty in maintaining stable fuel prices under such conditions.
The minister further explained that gradual price adjustments are more sustainable than sharp increases implemented at once, adding that failure to act would have forced fuel suppliers out of the market due to unprofitable conditions.
She concluded that the government’s decision is aimed at ensuring a steady and reliable fuel supply across the country, while stabilizing the energy sector in the long term.
