Economy: Malawi
Key Facts
—What. Petrol and diesel are scarce across Malawi, and minibus fares have risen by 50% to 100% on the routes reported.
—Why. Malawi imports its fuel and pays mainly in US dollars, which are short.
—Where. Lilongwe, Blantyre, Mzuzu and the northern road from Karonga.
—Price gap. Black-market fuel sells at up to K20,000 (about US$11.65) a litre, against K5,619 (about US$3.27) at the pump for petrol.
—Supply. Nyasa Times reports about 119 loaded tankers heading into the country, based on sightings.
—US link. The IMF said on 6 October that talks with Malawi on a loan programme had made considerable progress; no deal is signed.
—As of. 7 October 2026, 22:42 GMT. Exchange rate US$1 = K1,717 (EODHD, 7 October).
Malawi’s fuel shortage is pushing up transport costs, and some minibus fares have doubled. Black-market fuel now costs about three and a half times the official petrol price.
What We Know
Fuel queues have spread across Malawi in recent weeks, according to Happy Jere, who chairs the Fuel Retailers Association of Malawi. He said diesel has been short for about three weeks, and petrol supply then followed.
Jere said urban filling stations receive about 30% of their normal diesel supply, and remote stations receive none. He blamed the lack of dollars to pay suppliers, and said the dollar shortage lies behind the queues.
Fares Rise and the Black Market Thrives
Nation Online reported on 7 October that the minibus fare from Area 25 to Old Town in Lilongwe has risen from K4,000 (about US$2.33) to K6,000 (about US$3.49). From Lumbadzi to Mponela in Dowa district, it has gone from K6,000 (about US$3.49) to K11,000 (about US$6.41).
In Blantyre, the fare from Ndirande to Limbe has climbed from K1,500 (about US$0.87) to K2,500 (about US$1.46). Long-distance buses from Mzuzu to Karonga now charge K60,000 (about US$34.94), up from K40,000 (about US$23.30).
The fare from Chinsapo to the Bus Depot in Lilongwe has doubled, from K1,000 (about US$0.58) to K2,000 (about US$1.16). Other routes rose less, with Mzuzu to Karonga and Area 25 to Old Town both up by 50%.
The regulator, the Malawi Energy Regulatory Authority (MERA), kept petrol at K5,619 (about US$3.27) a litre and diesel at K5,863 (about US$3.41) at its September review. Coaxley Kamange, secretary general of the Minibus Owners Association of Malawi, said black-market fuel sells at K20,000 (about US$11.65) a litre.
Kamange said operators spend more time searching for fuel and want to recover the cost. Don Napuwa, president of the Passenger Welfare Association, said some passengers now walk because they cannot afford the fares.
Why Malawi Is Running Short
Malawi is landlocked and imports refined fuel through ports in Mozambique and Tanzania. The state importer, the National Oil Company of Malawi (NOCMA), pays suppliers mainly in US dollars.
Dollars have been scarce for months, and Malawi has no IMF programme to help. The country’s wider currency story is explained here.
NOCMA has invited bids for 440,000 tonnes of refined fuel through Beira and Nacala in Mozambique and Dar es Salaam in Tanzania. Nation Online reported that the tender asks suppliers to propose payment terms, including credit, that ease pressure on Malawi’s dollars.
A Convoy on the Road
Nyasa Times reported that motorists spotted around 119 loaded tankers heading into Malawi’s main cities by the Karonga-Chiweta road. Sources at NOCMA, who were not named, told the paper that another 40 tankers were due to be loaded over the weekend.
That figure rests on sightings and unnamed sources, not on an official statement. NOCMA gave no public figure for the convoy.
What Is Not Known
It is not known how much fuel the tankers carry, or when it will reach filling stations. NOCMA has not published stock levels or a date for the queues to ease.
The outcome of the fuel tender is also unknown. So is whether bidders will accept the payment terms that Malawi can offer.
What It Means for US Readers and Investors
An IMF team led by Justin Tyson held talks in Lilongwe from 22 September to 6 October. The Fund said Malawi had made “considerable progress” toward a package that could support an Extended Credit Facility, and that fuel and sugar pricing reforms had helped markets work better.
No deal has been announced, and it would still need approval from IMF management and then the Executive Board. Malawi has had no IMF programme since its last one lapsed in May 2025.
For US readers, the main exposure is indirect, through the IMF talks, which the Fund says have also advanced on easing Malawi’s high public debt. Travellers should expect long queues, higher taxi and minibus fares, and limited fuel outside the big cities.
More: Africa news in English, every day from The Rio Times.
Frequently Asked Questions
Why is Malawi short of fuel?
Malawi imports its fuel and pays mainly in US dollars, which have been scarce for months. A fuel retailers’ leader says the dollar shortage lies behind the queues.
How much does fuel cost in Malawi now?
MERA’s pump prices are K5,619 (about US$3.27) a litre for petrol and K5,863 (about US$3.41) for diesel. Black-market sellers charge up to K20,000 (about US$11.65).
Is more fuel on the way?
Nyasa Times reported about 119 loaded tankers heading into Malawi, with 40 more due to be loaded. It is not known when that fuel will reach filling stations.
What does the IMF have to do with it?
The IMF said it made considerable progress toward a loan programme in talks that ended on 6 October. Any deal still needs approval from IMF management and the Executive Board.
Sources
Nation Online, fuel shortage pushes bus fares up · Nyasa Times, convoy of 119 fuel tankers heading into Malawi · Nation Online, MERA maintains petrol and diesel prices · Nation Online, forex crisis drives fuel shift (NOCMA tender) · Nation Online, fuel queues resurface (Happy Jere) · MBC, IMF and Malawi advance talks on ECF programme
Connected Coverage
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
Part of our ongoing coverage
Africa: The New Scramble — the great-power contest over the continent.