Minister of finance, Joseph Mwanamvekha, says MERA owes fuel suppliers about 1 trillion 2 hundred and 9 million kwacha.
According to the minister, MERA has also failed to remit about K593 billion to the Roads Fund Administration, 150 billion to the Malawi Rural Electrification Programme (MAREP), 5 billion kwacha to the Malawi Bureau of Standards (MBS) and 38 billion kwacha meant for development, that has negatively affected national development efforts.
Mwanamvekha was speaking during a press briefing in Lilongwe, where he said government wants to stabilize the economy through price stabilization, and also increase the number of beneficiaries on social cash transfers
He said black-market rate is fueling challenges in fuel importation and government is working towards alignment of the dollar on the official rate.
“Fuel prices were so low that transporters from Mozambique and Zambia were coming to Malawi to buy fuel. And also other transporters were fueling their tanks full when going outside the country because it was very expensive in other countries. Another thing you might be aware is that companies who exported things like soya beans and tea coffee have not yet received their payments so we will try to find other ways of helping the people”. He said.
In her remarks, Minister of Energy and mining Jean Mathanga, says the upward adjustment of fuel prices aligns Malawi with prevailing fuel prices in neighboring countries a situation that encouraged smuggling of the commodity across borders.
This adjustments results from the implementation of automatic pricing mechanism known as APM which links fuel prices to import costs as fluctuation on the international markets aligns with the Malawians kwacha against a dollar”. She said.
Mathanga says the adjustment is intended to curb the smuggling trend and stabilize fuel supply in the country.
“Also present at the press briefing were Jappie Mhango minister of Transport and Public Works, and Shadric Namalomba for Information and Digitalisation.
Meanwhile different quarters in the country have expressed their concerns over the recent price adjustment of fuel and the economic status of the country. Through press statements, Consumers Association of Malawi CAMA, People’s development party PDP, UTM party and an economic expert Milward Tobias say government is exerting pressure on Malawians who are facing economic challenges
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