Expert back LPG price hike to secure supply and predict fuel shocks

By Margret Mbendela

Blantyre, March 5, Mana: An economic expert has described the 19.65 per cent retail price adjustment of Liquefied Petroleum Gas (LPG) as a necessary measure to prevent importers from scaling down their operations while ensuring a steady supply for consumers.

Economic expert Christopher Mbukwa told Malawi News Agency (MANA) on Wednesday that the hike is likely a symptom of the country’s ongoing foreign exchange (forex) shortages rather than the immediate impact of conflicts in the Middle East.

However, he warned that the geopolitical tension would likely hit Malawi’s fuel prices within the next three to six weeks.

Mbukwa urged the government to implement targeted cash transfers specifically for vulnerable LPG users.

“Long-term solutions require more than just subsidies. Addressing the underlying forex crisis and investing in energy sector connectivity would be beneficial in minimising future energy price shocks,” he said.

Russel Chinseu, a local consumer in Blantyre, acknowledged the economic logic behind the price adjustment.

“Economically, it makes sense to adjust prices to avoid shortages. However, a 19.65 per cent increase is massive when household incomes are stagnant, as it puts immense pressure on household income,” Chinseu said.

The Malawi Energy Regulatory Authority (MERA) officially announced the increase effective March 4, 2026, where Board Chairperson Lucas Kondowe explained that the adjustment was driven by a 22.65 per cent rise in landed costs.

According to Kondowe, factors such as Free-On-Board (FOB) prices, road freight rates, insurance and handling costs made the previous retail price unsustainable.

He said the adjustment is vital to prevent importers from scaling down operations and to avoid a national gas shortage.