Government will cushion 50 percent of the price at which fuel should have risen starting from today, July 17.
Instead, Malawi Energy Regulatory Authority (MERA) has hiked the fuel price from K824 per litre for petrol to K888 per litre. The cushioning means petrol price would have risen by more than K64.
Prices of fuel have not risen in Malawi for almost two years.
In a statement dated July 16, MERA Chief Executive Collins Magalasi said MERA board decided to pass on only 50 percent of increases on pump prices to reflect the increased actual landed costs of petroleum products on the international market.
“The Board further resolved that the remaining 50% increase in landed costs be cushioned by the available funds in the PSF (Price Stabilization Fund),” reads the statement.
Diesel will be selling at K890.90 per litre while paraffin will be selling at K719.30 per litre.