Malawi’s energy regulator has increased petrol and diesel prices by more than 40%, marking the second fuel price hike in four months and raising fresh concerns about the rising cost of living.
In a statement released on Tuesday, the Malawi Energy Regulatory Authority (Mera) said the fixed fuel pricing system used by the previous government was unsustainable and had resulted in significant financial losses. The regulator announced a 41.3% increase in diesel prices and a 41.9% rise in petrol prices.
President Peter Mutharika, who returned to power last year, has been working to revive Malawi’s struggling economy. However, analysts and civil society groups have warned that the latest fuel increase could undermine those efforts and further strain households already dealing with high living costs.
“Fuel is not a luxury commodity. Any increase has a cascading effect on the cost of living,” the Human Rights Defenders Coalition said, noting that transport, food, and basic services are likely to become more expensive as a result.
Since Mutharika took office in October, petrol prices have risen by about 95%, while diesel costs are up roughly 80%. Under former president Lazarus Chakwera, fuel shortages were a major source of public frustration, with long queues at petrol stations becoming common. While fuel supply has improved in recent months, prices have continued to climb.
Mera said it is now operating under an automatic pricing mechanism, which adjusts fuel prices in line with global fuel costs and shipping expenses. Following the announcement, transport fares reportedly increased across much of the country, and further price rises for essential goods are expected.
The regulator’s acting chief executive, Dad Chinthambi, said the hike was necessary to ensure a stable fuel supply, maintain electricity services, and support infrastructure projects such as road maintenance and rural electrification.
The government is also seeking to stabilise public finances and negotiate a new support package with the International Monetary Fund. Despite these efforts, many Malawians have expressed disappointment on social media and radio programmes, saying they had hoped the current administration would ease economic pressures rather than deepen them.
