CAMA sticks to fuel price hike proposal
The Executive Director of the Consumers Association of Malawi (CAMA), John Kapito, has reiterated the need for an upward adjustment of fuel prices to help the government recover from mounting losses.
Despite a worsening fuel crisis, the government announced on Wednesday that it has no plans to raise fuel prices shortly.
However, Kapito argues that increasing prices is the only viable solution to address the over K1 trillion debt the government has accumulated from selling fuel at a loss.
“Government now has over a trillion in debt because they continue to sell fuel at a loss. The key question they must answer is: how will they recover the trillion-kwacha loss they’ve incurred so far?” Kapito questioned.
Meanwhile, Parliamentary Committee on Natural Resources Chairperson Welani Chilenga echoed Kapito’s sentiments, stating that the committee had already recommended a price hike to ease the financial burden. However, he stressed that Parliament’s role is limited to making recommendations.
“Our job in Parliament is to make recommendations; our standing orders do not allow us to compel the government to implement them. We presented what we believe is key, but it’s up to the government to take action,” Chilenga said.
When this issue was raised in Parliament, it sparked heated debate, with opposition members strongly opposing the idea of a price hike, calling it unreasonable given the current economic hardships faced by citizens.
The remarks follow government’s recent stand which said its focus is on exploring other strategies to stabilize the fuel supply without burdening consumers with higher prices.
Information minister, Moses Kunkuyu stated that they are prioritizing negotiations with fuel suppliers and exploring financing options to mitigate the debt without passing on costs to the public.
“We are fully aware of the debt issue, but raising prices at this point would further strain Malawians. We are actively working to secure favorable deals with fuel suppliers and seeking other financing methods to avoid drastic measures like a price hike,” Kunkuyu explained.
As the fuel crisis continues, tensions remain high between those advocating for immediate price adjustments and those pushing for alternative solutions to safeguard the country’s struggling economy.
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