The Malawi National Assembly has adopted a report by the Parliamentary Committee on Natural Resources and Climate Change regarding the status of fuel and fuel levy collection in the country.
Presenting the report on Wednesday, Committee Chairperson Welani Chilenga highlighted the committee’s recommendation for a reasonable adjustment of fuel prices by the Malawi Energy Regulatory Authority (MERA). He stressed that these adjustments should be strictly for cost recovery purposes and not for increasing profits.
“The committee emphasized the need for MERA to consider the hardships that Malawians are already facing due to the various calamities the country has endured,” the report states.
The report further disclosed that MERA currently has outstanding under-recoveries owed to fuel importers, amounting to K784.1 billion. The breakdown is as follows:
– NOCMA: K592 billion
– PIL: K156 billion
– Mount Meru: K22 billion
– SIMSO: K5 billion
– Puma: K5 billion
– Energem: K1 billion
These figures include amounts owed to Petroda and other importers, which have accumulated since May 2022, following the depreciation of the Malawi Kwacha against the US dollar by 22 percent.
The committee also recommended that in the future, MERA should avoid allowing such large accumulations of debts to ensure more moderate price adjustments.
Esther Jolobala, Member of Parliament for Machinga East, seconded the report, arguing that Malawi has little choice since MERA did not adjust fuel prices earlier. However, she cautioned the government to be careful when making decisions that impact the public.
“Government allowed devaluation without considering its future impacts on the economy, where Malawians are greatly affected,” Jolobala said.
Members of the opposition Democratic Progressive Party (DPP) walked out of the chamber in protest against the committee’s recommendation. Leader of Opposition George Chaponda expressed the party’s disapproval of the proposed fuel price hike, citing its potential negative impact on citizens.
“The DPP has consistently voiced its disagreement with this decision from the committee stage,” Chaponda stated.
