BLANTYRE (Reuters) – Malawi increased fuel prices by an average of 35% to cover the rising cost of imports following a 25% devaluation of the local currency, the Malawi Energy Regulatory Authority (MERA) said on Thursday.
The government agency said the pump price of petrol had increased by 44.92%, diesel by 30.61% and paraffin by 29.29% to reflect the exchange rate of the kwacha against the U.S. dollar and high global petroleum prices.
Malawi devalued the kwacha on May 27 in reaction to rising commodity prices, which have hit the country amid declining revenue from tobacco, its major export.
Following the adjustments, petrol will now sell at $1.98 per litre, up from $1.36, and diesel at $1.90, up from $1.45 per litre.
The country’s year-on-year inflation rose to 19.1% in May from 15.7% in April, the National Statistical Office said.
Protest groups calling themselves “Concerned Citizens” have massed in cities in recent months demanding the resignation of President Lazarus Chakwera, whom they accuse of mismanaging the economy and failing to shield the poorest from inflation.
(Reporting by Frank Phiri; Editing by Anait Miridzhanian)
