Malawians have started directly feeling the impact of the joint US-Israel war on Iran as Malawi Energy Regulatory Authority (Mera) effected an average 34 percent increase in pump prices for diesel and petrol.
This is the third fuel pump price increase since October 2025 when the Democratic Progressive Party administration came to power after winning the September 16 General Election. The first increase was 33 percent followed by a 41 percent adjustment in January.
Following the adjustment, petrol has gone up by 34 percent from K4 965 to K6 672 per litre while diesel is now fetching K6 687 per litre from K4 945, a 35 percent increase. Paraffin has gone up by 82 percent from K3 200 to K5 824 per litre.
On the other hand, jet fuel now costs K5 439 per litre at Kamuzu International Airport in Lilongwe, up from K3 046, representing a 79 percent increase while at Bakili Muluzi International Airport in Chileka, Blantyre it is selling at K5 423, up from K2 993, an 81 percent hike.
Mera acting chief executive officer Dad Chinthambi, briefing journalists in Lilongwe yesterday, attributed the new increase to tensions in the Middle East that led to the closure of the Strait of Hormuz, the main maritime route for the Persian Gulf nations that handles at least 25 percent of fuel and other commodities.
“The closure has disrupted petroleum supply chains, pushing prices up sharply due to supply and demand pressures,” he said.
Yesterday, the price of crude oil fell by about 2.5 percent to $100.7 per barrel following hopes of a de-escalation of the conflict after US President Donald Trump indicated that Iran is seeking a ceasefire and that Washington would consider one once the Strait of Hormuz is open, free and secure. In March, oil prices went up by more than 50 percent, hitting above $100 per barrel for the first time since 2022.
Chinthambi said scarcity of oil on the global market has driven up procurement costs for import-dependent economies such as Malawi.
“When supply tightens, competition increases and prices rise. Suppliers are buying at higher costs and passing that on. As a country that imports 100 percent of its fuel, we have no option but to adjust prices to sustain supply,” he said.
Reacting to the increase yesterday, Economics Association of Malawi (Ecama) president Bertha Bangara-Chikadza has since urged government to use the PSF to ease immediate pressure.
“In the long term, we must invest in alternatives such as rail transport and efficient city bus systems to reduce fuel consumption. Strategic fuel reserves are also critical in cushioning global shocks,” she said.
Consumers Association of Malawi executive director John Kapito also warned that the hike will hit consumers hard, describing it as unexpected and avoidable.
“This increase will hurt Malawians. However, we urge traders and transporters not to exploit the situation by raising prices beyond reasonable levels,” he said, stressing the need to prioritise steady supply to avoid past crises.
Transporters Association of Malawi spokesperson Frank Banda said the hike is a major blow to the sector and will inevitably push up fares.
“The industry is already struggling with high costs and foreign exchange challenges. This increase adds significant pressure and risks losses unless corrective measures are taken,” he said.
Banda added that the association will present a petition to government today.
Meanwhile, the Centre for Social Concern (CfSC) has said the adjustment will strain household budgets, noting that over 60 percent of urban spending already goes to food and transport.
CfSC economic governance officer Agnes Nyirongo warned that fuel price increases have a ripple effect across the economy.
“Without targeted interventions, many households will suffer. Government should consider reducing some levies and increasing social cash transfers to cushion vulnerable groups,” she said.
In December, the National Oil Company of Malawi (Nocma) said it would import about 412 000 metric tonnes (about 549 million litres) of fuel in the 2026/27 financial year, an equivalent of 60 percent of the country’s consumption.
On the other hand, the Petroleum Importers of Limited (PIL), a consortium of private sector oil marketing firms, also issued its tender calling for suppliers of about 176 300 metric tonnes (about 200 million litres).
Malawi on average consumes one million litres of petrol and one million litres of diesel per day, translating to 60 million litres of petrol and diesel per month and 720 million litres of both items per year.
