Reports reaching Taarifa Business desk indicate that the prices of petroleum products in Malawi have hiked to levels that have left the citizens in a complete shock.
Petrol has been raised from K690.50 to K834.60 representing a 20.87% increase. For diesel price per litre has moved from K664.80 to K826.40 – this represents a 24.31% increase for Paraffin price per litre has shot up by 38.8% from K441.70 to K613.20.
“The combination of increased Free On Board (FOB) prices on the International Market and the poor performance of the Malawian currency- Kwacha against the US dollar and the SOuth African Rand, has made it necessary for us to adjust upward the prices of Petroleum products,” said Leonard Chikadya the Board Chairperson of Malawi Energy Regulatory Authority (MERA).
Malawi is one of the world’s most densely populated nations with a population of 15.8 million people. The landlocked country in south central Africa ranks among the world’s least developed countries.
The economy of Malawi is predominantly agricultural, with about 80% of the population living in rural areas.
The main food crops are maize, cassava, sweet potatoes, sorghum, bananas, rice, and Irish potatoes and cattle, sheep and goats are raised. The main industries deal with agricultural processing of tobacco, tea and sugar and timber products.
Gross Domestic Product in Malawi is expected to reach 4.70 USD Billion by the end of 2020, according to Trading Economics global macro models and analysts’ expectations. In the long-term, the Malawi GDP is projected to trend around 6.00 USD Billion in 2021 and 7.50 USD Billion in 2022.