BLANTYRE-(MaraviPost)-The country’s consumers rights body Consumers Association of Malawi (CAMA) has accused opposition political leaders for misleading the nation on fuel pricing that can be reduced willy-nilly.
The consumers rights body observes that the tendency opposition leaders advancing on fuel pricing reduction is uncalled for.In a press statement made available to The Maravi Post on Tuesday, January 26, 2021 signed by CAMA Executive Director John Kapito says fuel pricing needs to be looked into with economic dictates than political.
Kapito wonders as to why opposition Members of Parliament (MP) should use a political podium when the powers to remove and add taxes and levies on fuel are within their powers.
“Members of Parliament are confusing Malawians by suggesting that fuel prices can be reduced without members debating such tax removals on fuel.Why should our political leaders mislead Malawians on a product so sensitive to the lives of many consumers by pushing blame when the powers to reduce fuel price rests with them, is it just seeking relevance or popularity?
“The pricing model of fuel in Malawi is not a secret to any interested person including our politician and it has two components which is the FOB price and levies or taxes that are added on top of FOB prices,” wonders Kapito.
He adds, “Unfortunately, the Government levies and taxes constitute almost 50% of the pump price and indeed if any politician and mostly those that sit in parliament would wish to have fuel prices reduced all they have to do is to remove all the taxes that are imposed on fuel and Malawi would have the cheapest prices of petroleum products and make consumers and opposition members of Parliament happy but that would also create another challenge for Malawi where all international transporters would find Malawi a place to refuel their cars and worst still Malawi fuel will be smuggled to our neighboring countries where prices of fuel will be extremely high.
“Secondly, Malawi would have to find money from other sources to build or construct the roads, to pay members of parliament their high obscene salaries the very same people that are asking for the reduction of fuel prices and that all taxes being generated from the sale of petroleum products
will have to be identified from elsewhere.
Kapito appeals, “We believe that the Members of Parliament that are demanding for the reduction of fuel prices today have the wisdom to identify where new taxes and levies will be collected from. Lastly, we wish to remind our politicians that WORDS MATTER and that they must refrain from making statements that are just to make them relevant and popular at the expense of the poor”.
