Good news: Report indicate that Malawi has the most stable fuel prices across Africa’s Sub-Saharan region
Malawi’s fuel prices have remained stable in the recent past months across Africa’s sub- Saharan region, a recent report by the Reserve Bank of Malawi (RBM) shows. Malawi’s showing is contrast to several other countries which has seen prices soaring consistently which includes South Africa, Kenya, Botswana, Tanzania and Rwanda, among others.
The last time fuel prices in Malawi were adjusted was in November 2023 to K2, 530 per litre for petrol, K2, 734 per litre for diesel and K1, 910 per litre for Kerosene.
This was necessitated by a 44 percent devaluation of the Kwacha at the time.
The RBM report notes that retail fuel pump prices across selected Sub-Saharan African economies exhibited diverse trends during the month under review.
For instance, in South Africa, Petrol and diesel prices decreased to $1.38 per litre and $1.21 per litre respectively in June from $1.45 per litre and $1.28 in May 2024. In Tanzania, petrol and diesel prices decreased to $1.25 per litter and $1.19 per litter from $1.28 per litter and $1.24 per litter.
“In Kenya, petrol and diesel prices fell to $1.48 per litter and $1.35 per litter in June 2024 from $1.49 per litter and $1.38 per litter in May 2024. In Rwanda, retail pump prices for petrol lowered to $1.27 in June 2024 from $1.37 per litre in May 2024, however, the price of diesel slightly rose to $1.28 per litter from $1.27 per litter in the previous month,” the report reads.
The report further notes that the Botswana Energy Regulatory Authority maintained retail pump prices for both petrol and diesel at their May 2024 levels.
In an interview, economist Velli Nyirongo said the decision to maintain the fuel prices is the right decision given the current environment given the current forex reserve position.
“This is good news to the consumers who are experiencing high cost of living. This is a positive factor to stabilise the non-food inflation rate.
“The maintenance of retail pump prices for petrol and diesel at consistent levels by Mera to help provide economic stability and predictability, which can positively impact consumer confidence, spending habits, and overall economic health,” Nyirongo said.
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