‘Missing’ fuel levy riles Parliament
What started as a dull day in Parliament yesterday turned chaotic over “missing” road maintenance levy in the price of fuel which has seen government failing to compensate importers for exchange rate losses incurred.
Malawi Energy Regulatory Authority (Mera) owes the fuel importers about K785 billion and government has conceded it has no authority to push the companies to pay K330 billion in road maintenance levy funds.
The worsening conditions of roads prompted some parliamentarians to ask Minister of Transport and Public Works Jacob Hara to do something in their constituencies.
It was at this point that the minister brought up the issue of fuel levy, sparking a hot debate in the House.
The issue attracted points of order and interjections and chaos reigned in the morning part of the yesterday’s deliberations and could not die in the afternoon sitting.
At some point, Blantyre City South East MP Sameer Suleman (Democratic Progressive Party-DPP) accused Hara of meddling in the operations of National Oil Company of Malawi by being involved in fuel importation deal in Dubai. However, the minister denied the allegation.
Chipping in, Thyolo Central MP Ben Phiri (DPP) said it was irregular that Malawians continue to pay the fuel levy for the purpose of road maintenance, yet the funds are not being channelled for the intended purpose.
He said: “The point still remains, Malawians are paying the levy so what we are asking is the minister to bring a report to the House and ask if Malawians should continue to pay the levy. It’s either we stop paying the levy or roads should be maintained.”
However, Hara assured that there would not be any fuel pump price upward adjustment and that there are ways and means to ensure the situation is cleared.
In an interview, the minister admitted there was a price disparity between what is calculated on paper and the actual price on the market because while government uses official exchange rate of K1 751 to a dollar, fuel importers are sourcing forex at the market rate that is at least K2 200 to a dollar.
The Price Stabilisation Fund, which is meant to cushion marginal price surges, was depleted in 2022 due to import losses, affecting the fund’s ability to compensate importers for recoveries.
