The recent slump in Malawi kwacha’s value and the easing of Covid-19 restrictions in most parts of the world will eventually result in Malawians paying for more petroleum products , Consumer Association of Malawi (Cama) has warned.
Cama executive director John Kapito told journalists in Blantyre on Monday that Malawians should prepare for an imminent fuel hike that will trigger prices of other commodities to go up too.
“There was no demand for petroleum products globally because of Covid-19, therefore the prices of petroleum products went down,” observed Kapito during a workshop to update journalists on petroleum pricing trends.
He said that now with easing of lockdown restriction around the world “there is demand where prices internationally have started going up and Malawi will be affected.”
Kapito also noted that the Kwacha currency is currently weakening, trading at around K756 against the US Dollar in authorised dealer banks.
“The consumer should now prepare to pay higher prices,” said Kapito.
Malawi Energy Regulatory Authority (Mera) spokesperson Fitina Khonje said decision of prices of fuel can only be made when the regulator’s board has been instituted after it was dissolved in June this year.
When making its price determination, Mera assess the combined effect of the movement of Free on Board (FoB) prices, kwacha exchange rate against the dollar and changes in the local factors such as inflation.
Reserve Bank of Malawi Governor Wilson Banda recently said there are impending significant inflationary pressures emanating from a gradual pick-up in food prices.
Source: Nyasa Times