In Malawi, a major economic shift has hit motorists and businesses as the government raised fuel prices by more than 40 percent, marking the second such increase in just four months, a move aimed at relieving pressure on the country’s depleted foreign currency reserves.
The Malawi Energy Regulatory Authority (MERA) announced the new fuel prices effective January 20, 2026.Petrol has climbed from about 3,499 kwacha to 4,965 kwacha per litre an increase of roughly 41.9 percent.Diesel also jumped from around 3,500 kwacha to 4,945 kwacha per litre about 41.3 percent higher. This follows a previous significant adjustment made late last year, meaning households and businesses are now adjusting to rapidly rising transport costs. The move has lead to an increase in the cost of goods and services and small scale business as well as artisans are beginning to feel the pressure
We used to buy 2 liters of petrol at 7000 Kwatcha for my compressor but the price has gone up to 10,000 Kwatcha now,which is a very big percentage,besides petrol i have to buy other items to use and prices for such items have also gone up and the number of clients per day has gone done,which means my profit has also been affected.
FALISON KASASA, Tyre Fitter
Authorities say the increase was necessary to restore realistic fuel price levels after years of a fixed pricing system that drained government resources. This could also ensure consistent fuel supply and reduce shortages that have plagued motorists. Officials argue that the previous pricing regime where prices were held artificially low led to import losses and depleted reserves, forcing authorities to adopt a more market-aligned pricing mechanism.
The increase in fuel price has not affected me only but many people,i run a small business and depend on public transport and bus fares have gone up,commodity prices in shops have also been raised,all because of the new fuel prices.
GERTRUDE LAMSON, Street Vendor
Critics argue the increase, makes life harder for ordinary Malawians already grappling with high inflation and could trigger broader cost-of-living pressures across the economy, affecting everything from food to services.While authorities say it’s necessary to preserve foreign exchange and ensure fuel availability, the challenge now is managing the immediate pain felt by citizens and businesses as prices rise sharply at the pump and across the market
