TAM welcomes fuel adjustment, says subsidy was taking a toll on fuel transporters-Frank Banda

Operators in the country’s transportation sector have expressed mixed reactions to the 41 percent fuel hike by the Malawi Energy Regulatory Authority (MERA).

The Transporters Association of Malawi (TAM) spokesperson Frank Banda described the upward adjustment as a welcome development, noting that for the past years, the country’s fuel was sold at a very low price unlike the import cost.

He said this subsidy was taking a toll on fuel transporters and other wet cargo operators, making them endure the burden of hauling the commodity at a low transport rate, resulting in significant losses.

“However, we urge the government to revisit rates for dry cargo transporters, who will be significantly affected by this increase, to ensure the sustainability of their businesses,” Banda said.

Nonetheless, Minibus Owners Association of Malawi (MOAM) Secretary General Coxley Kamange has described the 41 percent fuel adjustment as unjustifiable amid the country’s economic situation.

He expressed fears that the development will take a toll on commuters who will feel the burden of potential increased bus fares.