Delays in adjusting fuel prices since May 2022 has necessitated fuel hike-MERA
Malawi Energy Regulatory (MERA) says the fuel hike has been necessitated by delays in adjusting fuel prices since May 2022, as well as an increase in landed cost.
MERA announced petrol and diesel hike effective January 20, 2026.
The price of petrol has been adjusted to K4,965 per litre up from K3,499 while diesel now costs K4,945 per litre, up from K3,500, representing 41.90 percent and 41.29 percent increase respectively.
Speaking at a press briefing in Lilongwe on Tuesday, MERA Acting Chief Executive Officer, Dad Chinthambi, said the decision was driven by the Automatic Pricing Mechanism (APM) which triggers a price review when the landed cost of fuel moves beyond a ±5 percent trigger band.
“However, in the last three years, this mechanism was abandoned in favour of a fixed pricing regime that proved to be commercially unsustainable. This led to significant trading losses, resulting in inability to import adequate petroleum products and inability to remit economically,” he said.
MERA has also granted a 50.8 percent to the Electricity Supply Corporation of Malawi (ESCOM) spread over a four year period from September 2023 to August 2027.
Meanwhile, ESCOM has adjusted its tariffs by 12 percent effective January 20, 2026.
According to Chinthambi, the increase aims to enable ESCOM collect revenue and improve service delivery.