Malawi News

Government speaks on fuel prices

Government speaks on fuel prices
Moses Kunkuyu

By Isaac Salima:

Minister of Information Moses Kunkuyu has said there has been inaction regarding calls to raise fuel prices following protests from some opposition Members of Parliament (MPs) on the issue.

There have been calls to adjust petroleum prices in the country to avert challenges related to fuel importation.

The Parliamentary Committee on Natural Resources and Climate Change, in its report to the House, also recommended a price increase.

However, opposition MPs spoke against the increase and subsequently walked out of the House in protest.

Speaking yesterday on Times Radio’s ‘Kulinji’ programme, Kunkuyu said that the actions of the opposition legislators compelled government officials not to act on the matter.

“Following the parliamentarians’ actions, the government was forced to devise alternative ways to ensure that fuel remains available at an affordable price.

“The recommendation for a fuel price hike is still being treated with the utmost seriousness it deserves. We still owe the importers substantial sums of money and they cannot begin supplying the commodity if we do not settle their payments,” Kunkuyu said.

The minister, however, acknowledged that the proposal for a fuel price hike was valid.

Chairperson of the Parliamentary Committee on Natural Resources and Climate Change, Werani Chilenga, called for swift action on the issue.

“The sooner we act on this matter, the better. The situation is not good at present and a decision must be made. Currently, because we are selling fuel at a lower price, we are failing to collect levies for road maintenance and electricity connections,” Chilenga said.

Executive Director of the Consumers Association of Malawi (Cama) John Kapito said Cama’s position on the matter has been vindicated.

“We have always maintained that it is better to purchase fuel at a reasonable price than to struggle for the commodity. Now, look at what is happening. We are back to long queues for fuel when this could have been avoided,” Kapito said.

The fuel issue came to the forefront when Kapito suggested that petroleum products be adjusted upwards to address fuel importation challenges.

Malawi Energy Regulatory Authority (Mera) Chief Executive Officer Henry Kachaje admitted that the country’s fuel prices are on the lower side, which is affecting their operations.

Kachaje disclosed that Mera owes fuel importers approximately K785 billion, an amount that has accumulated due to the continued sale of fuel at lower prices