The Consumers Association of Malawi (CAMA) is urging the Malawi Energy Regulatory Authority (MERA) to promptly adjust fuel prices to avert an impending fuel shortage that could have severe repercussions for both consumers and the economy.
In a statement issued by Executive Director John Kapito, CAMA highlights that MERA’s decision to freeze fuel price increases has led to significant financial losses for petroleum importers, making it increasingly unsustainable for them to continue importing fuel. While acknowledging that higher prices will negatively impact consumers, CAMA argues that the potential consequences of a fuel scarcity would be far more detrimental.
Kapito stated, “The current losses faced by petroleum importers are unsustainable and jeopardize the ongoing importation of fuel. While increased fuel prices will affect consumers and trigger higher costs for other goods and services, CAMA believes that regulated price increases are preferable to the severe consequences of fuel shortages.”
CAMA warns that a fuel scarcity could lead to serious economic and social issues, such as the proliferation of black market fuel sold at double the regulated price, rising costs of goods and services due to increased transportation expenses, and the possible closure of both small and large industries.
The association also stresses that MERA’s role is to regulate, not control, fuel prices, and that pricing should not be influenced by political considerations. CAMA calls on MERA to adjust fuel prices to levels that are fair to both importers and consumers, ensuring a stable supply of fuel in the market.
