Blantyre — Minibus Owners Association of Malawi (MOAM) has commended Government for reducing fuel prices.
MOAM Secretary General, Coxley Kamange made the commendation in an interview with Malawi News Agency on Thursday in Blantyre.
He observed that there cannot be any good news than the reduction in fuel prices saying normally fuel prices affect costs of many goods and services including transport.
“This is good news not only to us as an association but also to the general public.
I would like to commend government for this development which I believe will at least ease the people’s cost of living,” Kamange said.
Kamange further explained that owing to this development, the association expects that minibus business will improve as operators will be able to use the money served on fuel for other services.
He was however non-committal if and when minibus fares will also drop because of the development.
Kamange said since now powers to control prices of goods and services are in hands of the Competition and Fair Trading Commission (CFTC), he would not be in a position to say whether minibus fares will automatically drop as well.
“It is difficult for me to say that minibus fares will be reduced automatically because apart from fuel, other factors have to be considered as well,” he said citing spare parts as some of the factors.
It has been a common trend in Malawi that when prices of fuel go up, minibus fares go up as well.
The Malawi Energy Regulatory Authority (MERA) announced a reduction in the cost of petrol, diesel and other petroleum products effective Thursday, September 4.
According to a statement released by the regulatory body, Petrol will now be selling at K796.20 from K839 per litre, Diesel will now be selling at K805.50 from K853.40 per litre while the cost of paraffin has remained at K719.30.
MERA has also announced a reduction in the cost of aircraft fuel, JET A1, from K719.39 to K708. 64 at Kamuzu International Airport and K715.21 to K700.28 at Chileka Airport.
The energy regulator has attributed the price reduction to stability of the Kwacha against the US dollar and reduced importation costs.