Public sneers at K53 downward adjustment of petrol

* Prices of diesel and paraffin have been maintained but liquefied petroleum gas has been adjusted

* The movement of prices on the global market have allowed for a downward adjustment of fuel under the Automatic Price Mechanism

By Duncan Mlanjira

The public has described as an insult of highest order the price adjustment of petrol by K53 — from K1,999.00 per liter to K1,946.00, saying it is a mockery to poor Malawians, because this so called reduction will not change anything.

The public attacked Malawi Energy Regulatory Authority (MERA) Chief Executive, Henry Kachaje, saying it was a waste of resources to a whole press conference just to announce the K53 downward adjustment.

Prices of diesel and paraffin have been maintained but liquefied petroleum gas has been adjusted and at the press conference, Kachaje said the movement of prices on the global market have allowed for a downward adjustment of fuel under the Automatic Price Mechanism.

Petrol price was hiked from K1,380 per litre to K1,999 in June while  diesel was raised from K1,470 per litre to K1,920 and paraffin from K956 got hiked to K1,236.

Thus the public sneering on social media at this K53 downward adjustment — not needing a press conference but could just had been a news item from a press release as is the case on upward adjustment.

But commenting on Facebook, Tabitha Mataula said “half bread is better than none”, adding that this could lead to more downward adjustments.

“You can start a restaurant shop with one one wing. I miss these motivation from our own,” she said

She was supported by Reuben Kadewere, who said this is “news we all want to hear. Hope it goes down further at some point. At least something to smile about.”

Caroline Phiri was of the option that the government should serious consider transport the petroleum products by rail as promised.

When fuel price was increased in June, National Oil Company of Malawi (NOCMA) deputy chief executive officer, Helen Buluma defended the astronomic fuel price increase, in which she alluded that the prices are cheaper in Malawi.

She told the media that petrol was supposed to be at K3,500 per litre as of June than the pegged K1,999, saying prices of fuel on the international market keep increasing on daily basis but NOCMA cushions it by covering the difference between the actual price of fuel and the prices set by Malawi Energy Regulatory Authority (MERA).

She was quoted by the media as saying NOCMA has spent K68 billion in covering the difference over the past three months of June, saying prices on the international market will continue to increase and the June price hike was not enough while attributing the Ukraine-Russian war as “been a major contributor of fuel hike by twice the price we had towards the end of last year”.

“As such, we can only import from the Gulf region which is already on high demand due to European competition,” she was quoted as saying.

Meanwhile, MERA has warned illegal vendors and fuel service stations aiding illegal fuel vending malpracticeto halt or risk facing the law as concerns for fuel vending are on the increase.

A press statement released by MERA on Wednesday, said retail fuel service stations’ licensing conditions do not permit hoarding of petroleum products, showing undue preference to, or discriminating against any person(s) with regard to the provision of petroleum products or services.

The statement has also assured that MERA will intensify spot checks and ensure that offenders are held accountable and regulatory sanctions are applied and as appropriate, suspend or revoke licenses of fuel service station operators involved in this malpractice.

The Regulator further urged consumers to report illegal fuel vendors and retailers of petroleum products suspected of engaging in discriminatory and corrupt practices to the nearest Police Stations or call toll-free Tip Off Anonymous 874 and MERA.

In an interview with Malawi News Agency (MANA), the Public Relations Officer (PRO) for Lilongwe Police Station, Hastings Chigalu, highlighted that they are ready to work with MERA and ensure that illegal vending is put to a stop.

“Fuel is a hazard and most of these illegal vendors keep the fuel in their homes which is a threat to human lives,” he said. “We are more than ready to partner with MERA where necessary to ensure that illegal vending is flashed out and that people are safe from the dangers paused by illegal fuel vending.”—Additional reporting by Priscilla Phiri, MANA