The Ministry of Energy has attributed the recent increase in fuel prices, as announced by the Malawi Energy Regulatory Authority (MERA), to ongoing geopolitical tensions involving Iran and surrounding regions.
Minister of Energy Jean Mathanga made the remarks in Parliament while providing a detailed explanation on the factors behind the latest fuel price adjustment.
According to Mathanga, the disruption of operations at the Strait of Hormuz has significantly affected global fuel supply. He explained that many countries that supply fuel to Malawi rely on this critical route, and its instability has led to shortages.
He noted that over 100 countries worldwide, including Malawi, are currently experiencing fuel supply challenges as a result of these disruptions.
Mathanga further stated that an assessment conducted by MERA revealed that the global shortage of fuel has driven prices upward, prompting the authority to adjust local fuel prices accordingly.
Despite these global factors, the Minister also pointed to domestic challenges, particularly the shortage of foreign exchange. He said the situation has been worsened by parallel market activities where foreign currency is traded at rates different from the official government rate, further constraining supply.
Meanwhile, Mathanga disclosed that the government has introduced a fuel levy of K150 per litre as part of efforts to repay an outstanding fuel-related debt amounting to K1.2 trillion.
The government maintains that these measures are necessary to manage the ongoing energy crisis and stabilize fuel supply in the country.
