There is a likely reduction in demand for gas, after the 12.11% price hike by the Malawi Energy Regulatory Authority (Mera). The development, according to stakeholders, will negatively affect gas demand.

Mera recently reviewed price of liquid petroleum gas (LPG) by 12.11%, attributing the hike to increased global prices and the depreciation of the South African rand against the Malawi Kwacha. Consumers Association of Malawi (Cama) executive director John Kapito said the new pricing has disappointed consumers that had recently alternated to using gas. “People were slowly adopting the energy mix and diversifying sources but the adjustments means that it will become a bit expensive to use LPG in the households although we understand that the product does not have enough resources in its price stabilisation fund to cushion consumers because of low uptake.”

Meanwhile, Lilongwe-based LPG distributor 265 Energy Limited chief executive officer Mfundo Mbvundula observed yesterday that the price hike will affect the firm’s campaign of encouraging consumers to switch to gas. “As we are currently on a #Switch2Gas campaign, we believe this upward adjustment will significantly affect our efforts to have people switch from charcoal or electricity to gas.” Malawi was already registering the lowest usage of gas; the price hike will most likely worsen the record.