Malawi increases fuel and electricity pricesBy REX CHIKOKO in Malawi | Friday, May 11 2012 at 15:07
The devaluation of Malawian Kwacha early this week has begun to bite the country’s economy as prices of fuel and electricity increase by 29 and 75 percent respectively.
On Monday, Malawi devalued its currency from K168 to K250 to the dollar, in an effort to turn around the ailing economy as advised by IMF.
However, analysts and stakeholders were quick to criticise the move as ‘useless and hurting’ unless the country replenished its forex reserves.
Malawi Energy Regulatory Authority (MERA) announced on the increase of fuel prices on Friday morning through radio broadcast, saying the increment was in response to the recent devaluation of the country’s currency.
Petrol has risen from $1.52 to $1.96, while diesel is now selling at $1.90 from $1.44 per litre. The new rise came seven months after another increase in November last year.
Reserve Bank of Malawi Governor Charles Chuka told journalists the devaluation was inevitable and that donors were now expected to provide the needed aid.
“Malawians should be prepared to pay the price of devaluation, but we are going to recover. We expect donor aid to start coming within a month,” Mr Chuka said.
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