Malawi hikes fuel price and electricity tariffs as economy bits

Malawi has hiked fuel pump prices and electricity tariffs citing the weakening local currency against major currencies like the dollar and the Southern African rand, Malawi Energy Regulatory Authority (MERA) said in a statement on Friday.

Petrol has gone up from $1.7 per liter to about $2.2 per liter while diesel is now selling at $1.99 per liter from $1.7 per liter.

The latest increases in energy prices is expected to fan commodity price increases for the southern African nation already facing soaring food prices and a sputtering economy.

The hike in pump prices of fuel is the second one this year.

Rising inflation also forced MERA to increase electricity tariffs, for fhe second time since the last adjustment in May.

“The combined effect of the movement of the exchange rate and inflation has negatively impacted Escom’s [Electricity Supply Commission of Malawi] financial position.

Escom has to raise more money in local currency to meet existing foreign currency obligations to it’s suppliers and lenders,” MERA said in the statement.

Malawi’s inflation rate accelerated to 28. 3 percent in September from 25.5 percent in August.