Malawi energy regulator announces significant hike in fuel prices to preserve foreign exchange reserves

The Malawi Energy Regulatory Authority announced a significant increase in domestic fuel prices on January 20, 2026, as part of a broader strategy to prevent fuel shortages and preserve dwindling foreign exchange reserves. Effective today, the price of petrol has been increased by 42% to 4,965 kwacha ($2.90) per litre, while the price of diesel has been increased by 41% to 4,945 kwacha per litre. This represents the second fuel price adjustment in just four months under the administration of President Peter Mutharika peter mutharika.

The regulator stated that these increases were necessary to address the economic legacy of the previous administration. Under the government of Lazarus Chakwera lazarus chakwera, fuel prices had not been adjusted upwards, leading to the maintenance of artificial pricing structures. These domestic prices were kept low even as international benchmarks like Brent Crude Oil BZUSDand Crude Oil WTI CLUSDfluctuated. The Malawi Energy Regulatory Authority noted that these artificial prices created arbitrage opportunities for smugglers, which in turn depleted the foreign exchange resources of Malawi MW.