By Burnett Munthali
The Parliamentary Committee on Natural Resources has recommended a moderate adjustment of fuel prices by the Malawi Energy Regulatory Authority (MERA). The committee’s guidance stipulates that any price changes should be focused solely on recovering costs, rather than increasing profits.
Chairperson of the Committee, Werani Chilenga, underscored the importance of considering the economic strain already experienced by Malawians due to recent calamities. Chilenga highlighted the discrepancy between the current pump price and the cost of fuel importation. He noted that suppliers are currently relying on levies to cover the shortfall and sustain their operations, ensuring a consistent fuel supply across the country.
In his statement, Chilenga detailed that from January to June 2024, levies withheld amounted to MK 74.5 billion, a stark contrast to the MK 14.4 million that was remitted. The withheld levies include MK 33.3 billion for the road levy, MK 25.1 billion for the rural electrification levy, and MK 14.7 billion for the reconstruction levy.
Chilenga’s remarks emphasize that while adjustments to fuel prices may be necessary, they should not exacerbate the financial burdens faced by citizens. The focus should remain on cost recovery to stabilize the fuel supply chain without compromising public welfare.
