Transport service providers have decried the fuel price hike, saying it will negatively affect their operations and burden the public who will have to pay more to sustain operations.
The Malawi Energy Regulatory Authority (Mera) on Tuesday night announced new pump prices effective yesterday.
Petrol price jumped from K2 530 to K3 499, representing a 38.30 percent increase, while diesel was increased by 28.02 percent, from K2 734 to K3 500 per litre.
In an interview yesterday, Transporters Association of Malawi spokesperson Frank Banda described the fuel hike as a big blow to the transporters’ business.
affect their business. | NATION
He said the cost of doing business will go up while transport rates have not been revised.
Said Banda: “We have already been complaining to the government for the past months that the transport rates are very low. With the ongoing forex challenges in the country, our operational costs have gone high because we are buying everything equivalent to the black market.
“We wrote government that as transporters who are bringing fuel into the country, we are operating on losses. We asked the government to adjust our rates upward. While we are complaining about the rates due to forex issues, the fuel prices hike has worsened our problem.”
He feared that transporters for both liquid and dry cargo will not be willing to release their trucks to carry goods if the rates are not adjusted upwards, as that would mean they will continue operating at a loss.
Banda stressed that once businesses for transporters start collapsing, thousands of people will lose jobs.
He stated: “Transporters are the second major employer in the country, so government should handle this matter seriously.
“It’s like we are the one getting the burden. The moment the Mera board adjusted the fuel prices, they were also supposed to adjust the transport rates.”
On his part, Minibus Owners Association of Malawi president Coxley Kamange said the public should expect transport fares to go up, adding that some operators have already increased fares.
Kamange said the 38.30 percent hike on petrol will heavily affect minibus operators as it would also affect prices of spare parts and other essentials.
However, he urged operators to not take advantage of the fuel increase to make huge adjustments in the fares, saying Malawians are going through economic challenges.
Said Kamange: “The fuel hike has also put us in an awkward position, and it puts our businesses at risk. An increase in transport fares will see some customers failing to afford the fares and they will opt to walk. This means that we will lose some customers.”
Mera spokesperson Fitina Khonje told The Nation yesterday that the regulator applied the automatic pricing mechanism to arrive at the new rates.
