* LPG, also known as ‘autogas’, is mostly used in households for cooking, water heating, and space heating
* And for commercial/industrial as fuel for forklifts, agricultural machinery, and in ceramic or glass production
* It was last adjusted in October 2024 and since then, the Free-on-Board price ruling in January 2026, road freight rates, insurance & handling, financing cost, and in-transit losses have yielded a 22.65% increment in LPG landed cost
By Duncan Mlanjira
Malawi Energy Regulatory Authority (MERA) has increased retail prices of liquified petroleum gas (LPG) mostly used in households for cooking, water heating, and space heating and commercial/industrial as fuel for forklifts, agricultural machinery, and in ceramic or glass production.
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In its public notice issued today, March 4, MERA Board chairperson, Lucas Kondowe, indicates that the LPG retail price has been increased 19.65% from K3,740/kg to K4,475/kg effective March 4.
Kondowe explains that MERA Energy Pricing Committee met on February 25, 2026 to review prices of petroleum products and noted that the last LPG retail price adjustment was done in October 2024.
Since then, “the Free-on-Board price ruling in January 2026, road freight rates, insurance & handling, financing cost, and in-transit losses have yielded a 22.65% increment in LPG landed cost”.
“With the current non-cost reflective retail price, most LPG importers are unable to import the product, and some have scaled down importation substantially as business is rendered unviable.
“Under the Automatic Pricing Mechanism, LPG qualifies for price revision since the landed cost is beyond +/-5% trigger band. Therefore, to sustain importation of LPG, retail price has been adjusted upwards.”
Meanwhile, energy and economic experts have warned that Malawi will not be spared from the impact of the Middle East war on fuel availability and prices, urging the government to remain vigilant.
Energy expert Grain Malunga is quouted by ZodiakOnline as saying Malawi relies heavily on fuel imports from Middle East oil-producing nations and advised authorities to swiftly explore alternative supply options to cushion the country from potential disruptions.
He singled out the need to engage African oil-producing countries such as Nigeria as a possible remedy while economist, Abel Mwenibanda hinted that fertilizer importation faces risks, indicating that the recently presented national budget may need to be revisited to accommodate a cushion for sourcing and bulk purchasing fuel and fertilizer.
On his Facebook Inspirational and Motivational Facebook platform, financial market analyst, Benedicto Bena Nkhoma — a respected social media influencer on economic matters — noted that the public people reacted to the increase in LPG prices.
“Some were shocked, others frustrated, but there is a difficult truth we must understand as a country: energy prices are likely to keep rising, not because regulators want them to, but because of how our economy is structured.”
He explained that since Malawi imports most of its energy, petrol, diesel, cooking gas (LPG), it means the energy prices depend on global oil price trends, international shipping costs and the exchange rate of the Kwacha.
“When any of these rise, energy prices rise in Malawi. The weak Kwacha makes energy more expensive,” he said, adding that fuel and gas are bought in US dollars while people in Malawi earn and transact mostly in Kwacha.
“So when the Kwacha weakens, importers need more Kwacha; transport costs rise, electricity generation costs rise. This eventually passes through to consumers.”
On global conflicts, Nkhoma also attested to that they affect energy prices, saying: “Wars and geopolitical tensions have a direct effect on energy. Conflicts in the Middle East, Russia-Ukraine and other oil producing regions often push oil prices up.
“When global crude prices increase, fuel prices rise, transport costs rise, LPG prices rise. Even countries far away like Malawi feel the impact.”
He also shared that as a landlocked country, transport costs are high since fuel its ferried from thousands of kilometres from ports of Beira and Nacala in Mozambique and Dar es Salaam in Tanzania.
Demand for energy is also increasing since the population is growing, urbanisation is increasing, more households are shifting from charcoal to LPG and electricity, demand is rising faster than local energy production — “which means pressure on prices continues”.
“The big lesson for households; instead of reacting with anger every time prices increase, we must start preparing financially for a high-cost economy,” says Nkhoma, while adding three practical shifts:
* Improve energy efficiency at home by reducing waste;
* Increase income streams: Side businesses and investments are now necessary;
* Invest in productive assets: Assets create income that protects families from inflation.
“The real future — countries that will stabilise energy prices are those that invest heavily in solar energy by PPP, hydro power like the Mpatamanga project, local energy production and energy efficiency
“Malawi must move faster in this direction because energy security is economic security. Until then energy will remain one of the largest pressures on household budgets. Apa tikuthandizana kukomzekera, sikuwopsyezana (I am only advising on how we can prepare ourselves, it’s not about scaring you,”) Nkhoma said.
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