Over 130 civil society organisations (CSOs) have called for a permanent end to the US-Israel war against Iran, with further calls for respective governments, including Malawi to reduce taxes on fuels and gas.
In a statement, the CSOs that include 350.org, Fight Inequality Alliance and ActionAid, argue that millions of people globally are being pushed into hunger and debt because of the iron grip of fuel and gas on economies.
| Lloyd Kayisi
The call comes as Finance ministers gather in Washington DC, USA, for the International Monetary Fund-World Bank Spring Meetings amid warnings of global recession.
It reads: “In Malawi, the poorest households are forced to choose between eating and sending their children to school.”
Fight Inequality Alliance media officer Daud Kayisi said countries like Malawi, which are struggling with debt, are going to be pushed further into huge debt.
“Poor and vulnerable families now are struggling to buy food because prices of food and other essentials have gone up following the price increase in fuel. Difficult choices are being made, to buy food or do we send our kids to school.
“Globally, fertiliser has gone up by over 40 percent. What would that mean to a local farmer who has already been struggling to buy a bag of fertiliser at more than K180 000? The impact is huge,” he said.
Kayisi said developing countries like Malawi are struggling with debt, which was borrowed at high interest rates and the status quo worsens the debt situation of these countries.
“So can these debts be cancelled? I think it also presents an opportunity where we need to move away from fossil fuel and go to renewable energy which can easily be accessed,” he said.
Meanwhile, Capital Hill is sticking to fuel levies in the fuel price build-up amid increasing calls from opposition parties, CSOs and economists to suspend or revise them following a recent 34 percent price increase.
Malawi Energy Regulatory Authority director of finance Zachariah Ng’oma said in an earlier interview that about 60 percent of factors that influence fuel pricing, mainly landing costs, are beyond the regulator’s control while the remaining 40 percent comprise local levies and taxes.
He said the Price Stabilisation Fund, which cushions consumers from changes in variables that trigger fuel pump prices adjustments, remains depleted and in arrears of about K1.1 trillion.
“With the fund in arrears, our capacity to absorb shocks is limited. It could take about 4.5 years to clear the backlog,” said Ng’oma, adding that K12 billion has been collected since the January 2026 adjustment.
He said about K20 billion in levies has been raised, but obligations to institutions such as the Roads Fund Administration (RFA) are still outstanding.
But Economics Association of Malawi (Ecama) president Bertha Bangara-Chikadza said while higher taxes are good for domestic revenues and national income independence, they may also mean low development.
“Where possible, some shocks should be absorbed gradually first by the government before being fully passed on immediately to consumers, especially vulnerable households.
“Government needs to promote policies that stimulate production, especially in agriculture and manufacturing, to help stabilise prices and create jobs,” she said.
