By Chisomo Phiri

Human rights advocate Edward Kambanje has criticised the recent fuel price hike, arguing that the government has failed to shield citizens from economic shocks and warning that the move will worsen the cost of living.

In an interview with 247 Malawi News, Kambanje said government leadership is about absorbing shocks during difficult times rather than transferring the full burden to ordinary citizens.

“Government business is about absorbing shocks when necessary, not shifting the entire burden onto citizens,” said Kambanje.

He called for the restructuring of Malawi’s fuel pricing mechanism, saying it should strike a balance between market realities and social protection, as demonstrated by successful middle-income countries.

Kambanje acknowledged that automatic fuel pricing is not inherently flawed, describing it as a policy tool.

However, he warned that when applied without safeguards, it causes unnecessary hardship.

“Automatic pricing is not inherently wrong; it is a tool. But when applied without cushioning, it becomes automatic suffering,” he said.

The human rights advocate noted that fuel price increases have a direct and widespread impact on the economy, effectively devaluing the purchasing power of citizens as the prices of goods and services rise.

“A fuel price increase has a domino effect. Everything becomes more expensive, and in this case, the risks outweigh the benefits,” he said.

Kambanje also linked fuel price instability to the continued depreciation of the Malawi kwacha, particularly on the parallel market.

He pointed out that while the official exchange rate presents a different picture, the kwacha is reportedly trading at around K240 to one South African rand on the parallel market.

“If fuel prices are to decrease, the kwacha must stabilise first. The variance between the official exchange rate and the parallel market rate is simply too wide,” he said.

The human rights advocate concluded by urging the government to take decisive action to protect Malawians from the rising cost of living.

“The government can and should protect its people,” he said.

The Malawi Energy Regulatory Authority (MERA) on Tuesday morning announced a sharp increase in fuel prices, with both petrol and diesel rising by over 41 percent, effective January 20, 2026.

MERA Board Chairperson Lucas Kondowe,said the adjustment follows the reinstatement of the Automatic Pricing Mechanism (APM), under which fuel prices are reviewed whenever movements in key pricing parameters exceed a ±5 percent trigger band.

He said the APM had been abandoned over the past three years in favour of a fixed pricing regime.

Under the new pricing structure, the pump price of petrol has increased from K3,499 per litre to K4,965 per litre, representing a 41.90 percent rise.

Diesel has gone up from K3,500 per litre to K4,945 per litre, an increase of 41.29 percent.