Malawi is reeling from a severe economic strain as skyrocketing fuel prices make it the fourth most expensive fuel market in Africa, with petrol now costing $1.459 per litre. The rising fuel costs are compounding challenges for one of the continent’s poorest nations, leaving families and businesses struggling to cope.
According to Global Petrol Prices’ January 2025 report, only the Central African Republic ($1.718), Senegal ($1.546), and Zimbabwe ($1.480) have higher petrol prices on the continent. Globally, Malawi ranks 48th for petrol prices and 36th for diesel, exacerbating the country’s economic woes.
A worsening foreign exchange crisis has driven black market petrol prices to over K10,000 per litre, far exceeding the official price of K2,530. Businesses face mounting operational costs, transport expenses have surged, and essential goods are increasingly unaffordable for ordinary citizens.
Economic analyst Marvin Banda links the crisis to a 44% currency devaluation and poor pricing policies. “Transport costs have soared, inflating retail prices and reducing consumer purchasing power. Farmers can’t afford fertilizers, food production costs are skyrocketing, and hunger is growing,” Banda explained.
The crisis is particularly evident in maize prices, the staple food in Malawi, which have risen beyond the reach of many families. High transport costs are driving grain prices even higher, leaving many unable to meet basic needs. “People are struggling not just for food but for basic essentials like soap,” Banda added.
Malawi’s landlocked position further compounds the issue, says Werani Chilenga, Chairperson of the Parliamentary Committee on Natural Resources. “We face high transport costs, with our main supply route, Dar es Salaam, 2,000 kilometers away. Additionally, excessive fuel levies are driving prices up, and reducing these could provide relief,” he suggested.
The government has pledged measures, including securing fuel through agreements with five countries and sourcing from Abu Dhabi via Kenya. However, for many Malawians, these efforts seem distant as everyday struggles deepen.
Energy Minister Ibrahim Matola cited global factors, such as the Russia-Ukraine conflict and OPEC+ decisions, as contributing to high fuel costs. Critics, however, blame poor planning and corruption for worsening the crisis.
With rising transport fares and inflation, many citizens feel abandoned. “We don’t need reports; we need affordable fuel and food now,” said a frustrated resident.
As the fuel crisis deepens, coupled with economic instability, Malawi faces a growing risk of further poverty, leaving families desperate for urgent action.