Malawi increased petrol and diesel prices by more than 40% to reduce pressure on foreign currency reserves in a move that looks set to deepen a cost-of-living crisis.
Authorities said the prices will change in line with the cost of fuel imports, replacing an “unsustainable” fixed pricing system.
The hike — the second in four months — is likely to increase the cost of key services and goods, such as transport and food. Malawians have in recent years grappled with annual inflation that has hovered at around 30%.
President Peter Mutharika, who returned to power in October after vowing to revive the country’s ailing economy, is trying to improve the government’s finances as the country negotiates a new IMF support package.
Lilongwe agreed a $175 million loan from the lender in 2023 to restore economic stability after the COVID-19 pandemic exacerbated repayment pressures. But the loan deal was suspended last year.