Monday, July 15, 2024

Government moves in to further reduces fuel prices


“Like a fixing a broken bone, fixing this broken economy will have inevitable pain which we will have to bear for a moment”, – Chakwera once said.

It is a fact that President Lazarus Chakwera remains and honest and a Head of State with the highest levels of integrity.

This fact would be proven by his honest and factual position which he has consistently been telling Malawians that he fully appreciates and understand that the citizenry is going through tough social and economic times due to several factors including the global economic challenges.

But this, according to Chakwera, is temporary as it is part of the process in fixing the broken systems.

President Chakwera has therefore been honestly and truthfully telling Malawians that the pain was inevitable just as fixing a broken bone could be painful as well before the person will finally smile after the Doctors have done their work.

Typical of the same philosophy, the Chakwera administration has once again made a bold and a very crucial decision which will result into a further prices come next year.

Through the Malawi Energy Regulatory Authority MERA, the government has scrapped off transport brokerage commission under handling charges in price build-up of petroleum products.

As anesthetic to reduce the pain incurred in fixing a broken system, government’s intervention on fuel brokers is billed to cause further reduction to fuel prices in the country.

In a statement by the Malawi Energy Regulatory Authority MERA, the decision has been arrived at through a review of petroleum pricing structure and elements.

The statement which has been signed by MERA’s Chief Executive Officer Henry Kachaje further reveals that this is aimed at enhancing cost effectiveness and efficiency in supply chain in the fuel industry.

According to MERA, the decision will therefore result into lessening the burden on consumers.

Meanwhile all importers are being advised to employ in-house arrangements or other methods which are deemed efficient without passing on the costs to the pump on imports transports arrangements.

The development therefore means that effective 1st of January next year the transport brokerage commission shall no longer be a recoverable cost under the handling charges in the price build-up of petroleum products.

This will likely sound good news for members of the public and motorists in general as it would possibly push downwards pump fuel prices on service stations.

The move comes against the background of a recent move by MERA to reduce prices of fuel products with almost K200 on petrol.

However, it was unfortunate but not surprising that the critics especially those in opposition and some Civil Society Organizations never acknowledged such a positive development but instead are continuously making baseless claims that the current administration has failed to fulfil its promises.

However, it will remain a fact that the removal of transport brokerage commission will mean further reduction of fuel prices to the benefit of consumers.








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