Malawi is 4th in Africa’s highest fuel prices

By Benadetta Chiwanda Mia:

Malawi continues to rank among Africa’s most expensive fuel markets, standing on position four with petrol prices at $1.459 per litre.

This is according to recent rankings issued by the Global Petrol Prices’ January 2025 data.

The top three countries with the highest fuel prices on the continent include; Central African Republic at $1.718 per litre, Senegal at $1.546 per litre and Zimbabwe at $1.480 per litre.

The top three countries with the cheapest fuel prices are Libya at $0.030 per litre, Angola at $0.328 per litre and Egypt at $0.337 per litre.

In global rankings spanning 170 countries, Malawi stands at 48th for petrol and 36th for diesel prices.

Ironically, prices of fuel have been seen as the lowest among the country’s neighbours in recent months.

The persistent fuel crisis has been intensified by foreign exchange shortages, pushing official petrol prices from K2,530 per litre to black market rates of above K10,000 per litre.

In an interview Parliamentary Committee on Natural Resources Chairperson Werani Chilenga said the fuel prices in Malawi are justified because the country is a landlocked, hence incurs high transportation costs.

“The most stable of our route mix is the Dar es Salaam port in Tanzania which is 2,000 kilometres (km) away and transportation costs is very high. We also have got too many fuel levies. If some of them could be reduced and only maintain the most important one like the Road Administration Fund levy, the Marlep levy and the price stabilization fund levy, we could get the prices down,” Chilenga said.

Ministry of Energy Principal Secretary Alfonso Chikuni referred us to the Malawi Energy Regulatory Authority (Mera) Chief Executive Officer Henry Kachanje, who was not available for comment.

In a separate interview, economic expert Marvin Banda attributed the development to several factors, including the recent 44 percent currency devaluation and previous price suppression policies.

“The fuel price was artificially maintained for three years following the 2022 devaluation, resulting in non-competitive pricing. This situation has triggered a cascade of economic effects. Transport costs have risen sharply, inflating wholesale and retail prices while eroding consumer purchasing power. Our agricultural and import-dependent economy faces increased food production costs, particularly through higher fertilizer prices,” Banda said.

He added that maize harvest prices and new forex and fuel policies will be crucial indicators this Year.

“While inflation might slow, prices will likely remain high, continuing to burden Malawians,” he predicted.

Energy Minister Ibrahim Matola has revealed government initiatives to stabilise fuel supply, including negotiations with five countries for government-to-government agreements and securing fuel from Abu Dhabi through Kenya.

The global energy market continues to face volatility due to geopolitical tensions, supply chain disruptions, and shifting policies.

Global Petrol Prices attributes price variations between countries to various taxes and subsidies for gasoline, with events like the Russia-Ukraine conflict and Opec+ production decisions further impacting crude oil prices in import-dependent nations like Malawi.