By Malawi Exclusive
Renowned development and economic experts in the country have welcomed the impending adjustment of pump prices for petrol and diesel citing the situation inescapable for Malawi due to global dynamics economic and political dynamics.
A week after economies within the SADC region adjusted pump prices for petrol and diesel, there are indications that the Malawi Energy Regulatory Authority (MERA) is likely to follow suit.
The current rise in fuel prices globally is influenced by recent increases in the barrel of oil on the international market, exacerbated by the war between Russia and Ukraine.
A host of economists whose sentiments we solicited on condition of anonymity say the was economies within the Southern African Development Community (SADC) what has been happening in the SADC and East African Community (EAC) recently puts Malawi at a position where it can no longer cushion fuel prices.
“Being a member of the regional and global community makes it impossible for Malawi to fix fuel prices for too long. The economic effects filtered through neighboring economies will finally catch up with us in no time,” said one economist working at an advisory and audit firm in Blantyre but was coy on being mentioned by name.
He urged government to devise ways of how it will cushion prices of goods and services in the aftermath of the hike when it comes.
In other countries in the region, prices have also been hiked as a reaction to global dynamics.
Botswana Energy Regulatory Authority this week raised the retail pump prices for petrol and diesel.
Markets world over have been reacting to tensions in Eastern Europe between Russia and Ukraine. Furthermore, there are concerns that the war could disrupt global energy supplies.
There are also fears that further economic sanctions on Russia by the United States and National Alliance Treaty Organization (NATO) will affect global supply.
Next door in Zambia fuel prices have also been adjusted upwards early this week.
Even economies with costal access such as Mozambique have not been spared from the rising of fuel prices globally. The Energy Regulatory Authority (ARENE) in Maputo two weeks ago announced price increase for gasoline, diesel, lighting oil, cooking gas and vehicular gas.
Malawi relies on Mozambican ports in transporting exports into the country. Another neighboring country with costal access, Tanzania, also adjusted fuel prices months ago.
Furthermore, possibilities of further economic sanctions on Russia by the US-led NATO pose a threat of global oil supply.
Malawi Energy Regulatory Authority could not confirm if indeed they are raising fuel prices anytime soon.