Malawi is experiencing severe fuel shortages, with long queues forming at filling stations in the capital city of Lilongwe. The situation has become a norm in the southern African nation, which has been struggling with chronic fuel shortages for years. The shortage has led to a surge in petrol prices, making it difficult for motorists to afford fuel. According to GlobalPetrolPrices, an energy-price data provider, the cost of petrol in Malawi has risen to $3.24 a litre, which is the highest in Africa and the second-highest globally.
The fuel shortage has disrupted livelihoods and straining an economy starved of foreign currency. Many motorists, including motorcycle taxi operators, have turned to the black market where petrol can cost as much as 20,000 kwacha ($11.50) a litre. McDonald Kachule, a motorcycle taxi operator in central Lilongwe for six years, said he has been spending more time on the fuel queue than on his business, making it unsustainable. The high cost of fuel has also affected the economy, with many businesses struggling to operate.
The government has blamed the fuel crisis on a shortage of foreign currency needed to pay for imports. Officials say international supply disruptions linked to the Iran war have compounded the problem, with banks struggling to honour letters of credit and some overseas suppliers demanding upfront payment. The country consumes about two million litres of fuel a day, requiring $49 million a month in foreign currency, according to the National Oil Company of Malawi.
The fuel shortage has also affected the food security of the country, with economist Milward Tobias warning that the lack of supply threatens the delivery of fertiliser and other essentials to farmers. The squeeze is hitting a population already struggling to make ends meet, with the World Bank estimating that 76 percent of Malawians lived below the international poverty line of three US dollars a day in 2025.
The government has sought emergency financing, including through the sale of gold reserves, to pay suppliers. Energy Minister Jean Mathanga said on Monday that more than 23 million litres of petrol and diesel had been procured, with nearly half in transit and some already reaching filling stations. However, the process of distributing fuel to filling stations has been challenging, with Dyton Ganiza, operations manager at the Best Oil retailer, saying that when they receive the product, everyone is scrambling to get it.
Some businesses are seeing an opportunity in the crisis, with a Malawi-based company that assembles and converts electric motorcycles reporting growing demand. The company, SGV, said electric bikes can dramatically reduce operating costs for high-mileage riders, with electricity for a heavily used motorcycle costing less than 750 kwacha a day, compared with up to 30,000 kwacha for petrol. However, expansion is constrained by the same foreign-exchange shortages affecting the wider economy.
The crisis exposes a deeper structural problem in Malawi, with economist Milward Tobias saying that the environment is far from getting ready to industrialise. The country faces challenges, including unreliable energy supplies, foreign-exchange constraints, and recurring import shortages. The fuel shortage has highlighted the need for Malawi to address these structural issues and find a long-term solution to its fuel crisis.
Key points
- Malawi has the highest petrol prices in Africa, at $3.24 a litre.
- The fuel shortage has disrupted livelihoods and straining an economy starved of foreign currency.
- The crisis has exposed a deeper structural problem in Malawi, including unreliable energy supplies and foreign-exchange constraints.
