The Malawi Energy Regulatory Authority (MERA) has hiked fuel prices by up to MERA raises fuel prices by up to 33.16 percent, with new pump prices set to take effect on October 1, 2025.
Petrol will now sell at K3,499 per litre from K2,530 (a 38.3% increase), while diesel will go up to K3,500 per litre from K2,734 (a 28% increase).
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According to MERA, the price adjustment follows a sharp rise in landed costs of petroleum products, driven by a higher average market exchange rate of K2,350.00 per US dollar compared to the official rate of K1,751.00.
Board Chairperson Charles Kambauwa explained that although Free-On-Board (FoB) prices for petrol and diesel had dropped by 10.64 percent and 18.14 percent respectively, importation costs escalated due to freight, railage, insurance, handling, and in-transit losses.

“These factors increased In-Bond Landed Costs by 52.42 percent for petrol and 49.67 percent for diesel, pushing the changes beyond the ±5 percent trigger limit under the Automatic Pricing Mechanism,” Kambauwa said.
He added that the hike was necessary to ensure sustainable fuel supply and cost-reflective pricing.
The development is expected to raise transportation costs and put additional pressure on the cost of living, with economists warning of a fresh round of inflationary shocks.