15.25% LPG price hike sparks outrage among energy advocates

The Malawi Energy Regulatory Authority (MERA) has announced an upward revision of the maximum retail price for Liquified Petroleum Gas (LPG), a move that has ignited concerns among environmental advocates and stakeholders across the country.

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Effective from October 16, 2024, the price per kilogram of LPG will rise by 15.25%, from MWK 3,245 to MWK 3,740.

In a statement signed by MERA’s Chief Executive Officer Henry Kachaje, the adjustment has been necessitated by the depreciation of the Malawi Kwacha against major currencies.

While MERA insists the price hike is necessary to sustain the viability of the LPG market, renewable and sustainable energy experts argue that the move threatens the country’s progress toward energy sustainability and environmental preservation.

Kenneth Mtago, a clean energy expert, expressed deep disappointment over the timing and implications of the price adjustment, criticizing MERA for failing to engage stakeholders in the energy sector before implementing the hike.

Mtago argues that the increase not only discourages the adoption of LPG but also exacerbates deforestation and pollution as more households will revert to using biomass for cooking.

“As we work to complement the government’s efforts by promoting renewable energy, this price increase undermines the strides we’ve made in encouraging people to transition from using charcoal and firewood to cleaner energy sources like gas,” Mtago said.

Mtago also lamented that despite Malawi’s commitment to achieving Sustainable Development Goal of ensuring access to affordable, reliable, sustainable, and modern energy for all (SE4ALL) by 2030, the price hikes on essential energy sources threaten to derail progress, raising concerns about the country’s ability to meet its international sustainability goals.

“So as much we know for sure that as a country, we are committed to being sustainable, to achieve SE4ALL by 2030. That’s a dream that will not be realized as the way we are by increasing prices without considering that we also as a country need to meet our international agenda,” he added.

Civil Society Network on Climate Change (CISONECC) National Coordinator, Julius Ng’oma, shared Mtago’s concerns, warning that the price increase could have far-reaching environmental consequences.

Ng’oma says as the country battles rampant deforestation and environmental degradation fueled by dependence on biomass for cooking and heating, the recent LPG price hike threatens to derail efforts to protect the nation’s forests by making clean energy alternatives increasingly unaffordable for low-income households.

“LPG was considered an alternative to lessen the pressure on forest resources for domestic and industrial energy needs. This is a blow to collective efforts to rescue trees and forests in Malawi since the price hike will make it more difficult for poor Malawians to access and afford LPG,” Ng’oma said.

Ng’oma has however called on the government to consider subsidies for LPG, suggesting that part of the Affordable Inputs Programme (AIP) could be used to subsidize renewable and clean energy technologies.

According to the United Nations Development Programme (UNDP), only 18% of Malawi’s population has access to clean and sustainable energy.

To enhance access to renewable energy in Malawi, stakeholders in the sector have been urging the government to consider removing the 16.5% Value Added Tax (VAT) on clean energy tools in the national budget.