President Lazarus McCarthy Chakwera has stepped in to address the Malawi Energy Regulatory Authority’s (MERA) proposal to increase fuel prices by 30%. The President has rejected the steep hike, recognizing the potential impact on the economic well-being of Malawians.
MERA had recommended the significant increase in the prices of petrol and diesel to reflect the sharp rise in global fuel costs, which has led to fuel suppliers incurring losses and the government accumulating unsustainable debts. This proposal had already been endorsed by Parliament and the Consumer Association of Malawi (CAMA), which believed the hike was necessary to address the underlying economic realities.
However, President Chakwera, cognizant of the plight of Malawian citizens, has pushed back on the 30% increase, arguing that it would not be a viable option given the current economic position of most Malawians. A source within the Office of the President confirmed that the President has rejected the proposal and asked MERA to reconsider the concerns of the Malawian people in arriving at a decision that balances economic realities and the well-being of citizens.
This decision aligns with the Malawi Congress Party’s philosophy of a democratic developmental state that prioritizes pro-poor economic approaches. The President’s intervention is seen as a move to cushion Malawians against the shock of global fuel price increases, which could have a ripple effect on the cost of various commodities in the market.
The rejection of the steep fuel price hike is a testament to President Chakwera’s commitment to addressing the needs of the Malawian people and finding a balanced solution that takes into account both economic considerations and the welfare of the citizens. As the country navigates the complex challenges posed by the global fuel market, this intervention by the President aims to mitigate the impact on the lives of Malawians.
