BLANTYRE--Local analysts have described Malawi government’s directive to stop fuel price hike as technically returning to fuel subsidization system.
Last week, government prevented the Malawi Energy Regulatory Authority (Mera) from effecting new fuel pump prices it announced to the general public.
The spokesperson for the regulatory body Edward Mponda confirmed to have received a communication from government restraining them from effecting new fuel prices.
However, government’s decision to reverse the fuel prices excited most Malawians and some local economic experts who have been pressing government to intervene in petroleum prices.
If implemented, petro would have been going at MK570 up from MK539, while diesel would have risen from MK545.80 to 521.90 per liter.
Earlier last week, one economist Friday Jumbe suggested the creation of a fuel subsidization fund as a cautionary mechanism.
According to Jumbe, under the subsided arrangement government will be controlling fuel prices once they go up on the international market.
MaraPost’s efforts to seek interpretation of the development from some experts yielded no results as the Malawi Confederation of Chambers of Commerce and Industry has asked for ample time to digest the trend.
However, Chancellor Kaferapanjira who heads the Chamber of Commerce indicated that government has reverted to the old pricing mechanism.
Kaferapanjira who was in support of the global automatic fuel pricing system said government has technically returned to the old practice of subsidize the price.
Despite authorities assuring motorists that the old prices will remain unchanged, business is still unstable as motorists are finding it difficult to access fuel.
---(c) The Maravi Post 2012. Reproduction without acknowledgement prohibited