By Chisomo Phiri
The Parliamentary Committee on Natural Resources and Climate Change has revealed that fuel importers in Malawi owe the Malawi Energy Regulatory Authority (MERA) K329.2 billion in unpaid levies.
Presenting the committee’s report in Parliament on Wednesday, Chairperson Werani Chilenga attributed the situation to the challenges faced by importers, including the devaluation of the kwacha, which has hindered their ability to operate effectively.
Furthermore,Chilenga highlighted that MERA’S failure to remit fuel levies has resulted in the regulator owing fuel importers K784.7 billion in under-recoveries, exacerbating the issue.
The committee has since recommended that MERA adjust fuel prices solely to ensure supply stability, rather than for profit.
Currently, fuel pump prices in Malawi are lower than the importation costs in neighboring countries, forcing suppliers to rely on levies for working capital.
From January to June 2024, withheld levies totaled K74.5 billion, compared to just K14.4 million in remittances
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