Civil society organisations (CSOs) have intensified their lobby for the removal of some levies in the fuel price build up to cushion consumers by engaging the Malawi Government on the same.
Representatives of Human Rights Defenders Coalition (HRDC) alongside other CSOs, namely Centre for Democracy and Economic Development Initiatives, Malawi Black Economic Empowerment Movement, National Advocacy Platform, Consumers Association of Malawi and Human Rights Consultative Committee met Malawi Energy Regulatory Authority (Mera) and Ministry of Energy and Mining officials on April 4 and 10 in Lilongwe to lobby for the review.
HRDC chairperson Michael Kaiyatsa said in a statement that key issues raised during the meetings included the heavy burden of taxes and levies on fuel prices and the shift from the Government-to-Government (G2G) procurement framework as well as the risks associated with the current open tendering procurement system.
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Reads the statement: “The lack of clarity on how the Price Stabilisation Fund [PSF] has been utilised; and the wider impact of the price hike on transport, food prices, businesses and household livelihoods.
“Following the discussion, it was collectively agreed that further engagement is necessary with the Minister of Finance, who is the policy holder and has the mandate to review or adjust fuel taxes and levies.”
In an interview, Kaiyatsa said Ministry of Energy committed to facilitate a follow-up meeting with Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha when he returns from the World Bank Spring meetings.
“We will continue to push for temporary relief measures to cushion consumers during this crisis; improved transparency in procurement and fuel price build-up. Clarity and accountability in the management of the PSF; and a long-term pricing framework that protects vulnerable households and supports economic stability,” he said.
From April 1 2026, Mera raised the pump price of petrol by 34 percent from K4 965 to K6 672 per litre, diesel by 35percent from K4 945 to K6 687 and paraffin by 82 percent from K3 200 to K5 824 citing a surge in global oil prices triggered by the US-Israel war on Iran. An agreement on a two-week ceasefire last week saw oil prices going down.
In Malawi, fuel levies now account for roughly 28 to 33 percent of pump prices, according to Mera.
The levies in the fuel price build up include K521 road maintenance levy, K207 rural electrification levy, K350 under-recovery levy and PSF at K168.77 alongside excise and import duties—together forming a significant share of the final price borne by consumers.
Minister of Energy and Mining Jean Mathanga defended the levies in Parliament in Lilongwe two weeks ago, arguing that the road and rural electrification levies and under-recovery charge are essential for financing roads, expanding electricity access and settling arrears owed to fuel suppliers.
She warned that rolling them back would undermine road rehabilitation and long-term energy investments.
Mera director of finance Zachariah Ng’oma is also on record as having stated that about 60 percent of factors that influence fuel pricing, mainly landing costs, are beyond the regulator’s control while the remaining 40 percent comprises local levies and taxes.
He said PSF, designed to cushion consumers from changes in variables that trigger fuel pump prices adjustments, remains depleted and in arrears of about K1.1 trillion.
The calls for Malawi to revise or suspend some of the levies some against a background of other countries such as Zambia, South Africa, Namibia and Ghana removing some levies and taxes on fuel to cushion consumers amid the Middle East conflict.
But Mwanamvekha is on record as having framed the issue as more of a fiscal constraint rather than a policy choice, stating in Parliament: “We are in a crisis.”
Economist-cum politician Dalitso Kabambe warned in an interview with The Nation last week that the K10.9 trillion 2026/27 National Budget risks undermining both revenue performance and fiscal stability due to “contradictory and self-defeating policy choices”.
The former Reserve Bank of Malawi governor, now UTM Party president, noted that higher fuel costs are driving up transport, food and production expenses, triggering a chain reaction that reduces household spending, business output and ultimately tax collections.
