The main opposition Democratic Progressive Party (DPP) has accused government of mismanaging the country`s fuel Price Stabilization Fund.
The development follows an increase in prices of petrol, diesel and paraffin by the Malawi Energy Regulatory Authority (MERA).
But according to DPP legislator for Machinga Likwenu Constituency Bright Msaka, the Tonse led administration is not utilising stabilization fund leading to what he called frequent rising of fuel prices.
“What these people are doing is raising the fuel prices all the time as if there is no price stabilization fund or as if the global market is accelerating astronomically.
“Malawi has one the highest fuel prices in Africa, and there must be something wrong the way they are managing the fuel price stabilization fund,” said Msaka.
But in his response, Minister of Energy Newton Kambala has faulted the DPP of politicising the fuel prices saying that the stabilization fund was depleted by the DPP regime leading government owing fuel suppliers money amounting to K40 billion.
“We tried as much as possible to wait for close to six months without increasing fuel prices but we could not anymore because oil supply companies in Malawi were actually trading at a loss and this was threatening this economy because this fuel ended up not being able to supply further.
“Because of the mistake the DPP government made, we actually owed the oil companies in Malawi a huge amount of money in excess of K40 billion which was created because of the decision the DPP government made and we are currently accumulating funds to collect that situation,” said Kambala.
According to MERA, the average prices of petrol, diesel and paraffin increased in the month of February 2020 by 13.31%, 13.59% and 12.55%, respectively when compared to the average prices which were applied when the In Bond Landed Costs (IBLC) were last revised.