The Malawi Energy Regulatory Authority MERA has adjusted upwards the prices of fuel with effect from Tuesday 20th of January 2026.
The pump price of petrol has been adjusted to 4, 965 Malawi kwacha per litre, from 3, 499 kwacha per litre, increasing by 41.90%, while diesel is now at 4,945 kwacha per litre from 3,500 kwacha per litre, increasing by 41.29 %.
According to a press statement released by MERA signed by its board chairperson Lucas Kondowe, the adjustment follows the historical Automatic Pricing Mechanism which was abandoned some threes back in favour of a fixed pricing regime, that proved to be economically unsustainable.
“This led to significant trading losses resulting in inability to import a equate petroleum products and inability to remit economically important levies like road levies to Roads Fund Administration(RFA) and Rural Electrification levy to Malawi Rural Electrification Program (MAREP) fund”, says part of the statement.
MERA said this, has greatly affected the implementation of some national development including road infrastructures.
Meanwhile, Electricity Supply Corporation of Malawi has also adjusted electricity tarrifs with 12% effective 20 January 2026.
The adjustment follows MERA’s approval in the 2023-2027 base tariff adjustments to be implemented in four phases of 18, 16, 12 and 8 percent.
In a statement ESCOM said the hike was supposed to be effected in September 2025 and the delay has resulted in operational challenges in electricity procurement, transmission and distribution.
ESCOM said through the hike, will ensure that the tariff directly benefits its customers saying will address fault resolution delays by procuring necessary materials.
Commenting on the matter, an Economic expert Adam Chikapa Gaesi said people should expect an increase in prices of almost all goods and services as a result of the recent fuel price adjustments.
Chikapa has since warned of economic shocks among Malawians, hence advising government look for possible measures to mitigate the impact.
Chikapa however indicated that Malawians should understand that government could not have control over the adjustments, because of the pricing mechanism, which automatic.
“What people should understand is that Malawi does not produce fuel. With this automatic pricing mechanism (APM), we follow what the external markets offer and for your information, this adjustment was supposed to be effected long time ago, but they were hiding it I think because of political reasons. So, MERA does not have a choice but to respond to the changes”, said Chikapa.
Also speaking on the matter, Center for Democracy and Economic Development Initiatives (CDEDI) executive director Sylvester Namiwa said will go on the ground to investigate reasons behind the increase in prices of fuel.
During a press briefing held in Lilongwe, Namiwa argued that there is some information MERA did not provide clearly to the public, hence promising to come back with information after they are done with the investigations.
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