Malawi’s fuel shortage shows no immediate sign of easing. Despite government assurances that supplies are secure, most filling stations are dry and those with fuel face long queues. Many residents and businesses are struggling to travel or operate.
“At times, we have to trek in order to reach to our destinations. We have stopped some of our businesses because we feel like it’s becoming expensive,” said businessperson Anthony Jamali in Lilongwe. Isaac Banda added: “Everything has risen in price… It’s become very difficult to travel from one place to another now because of the fuel crisis.”
The shortage is affecting both urban and rural areas. Farmers in remote areas need diesel to run equipment, and rural health centers require fuel and diesel for generators, medical procedures and patient transport. Health rights activist Maziko Matemba warned the scarcity “could have a negative impact on our provision of health care. When we have this scarcity, it means some ambulances might not run as expected.” He urged the state to prioritize ambulance services, noting hospitals operate on very limited budgets.
Malawi—landlocked and long accustomed to high fuel costs—recorded one of the world’s highest petrol prices this week: about $3.83 (€3.28) per liter, compared with roughly $1.50 in neighboring Zambia. The high cost and shortages risk further strain on households and businesses and carry political risk. Michael Kaiyatsa, chairperson of the Human Rights Defenders Coalition, recalled that similarly severe fuel shortages in 2011 provoked nationwide demonstrations.
Analysts link the crisis to Malawi’s foreign exchange shortages and economic structure. Heavy reliance on tobacco exports has been undermined by declining prices and global public health measures. Observers, including the World Bank, say Malawi urgently needs to diversify to earn hard currency—through tourism, formal mining and other sectors—to improve its ability to buy fuel on international markets. While tourism was once named a priority, Kaiyatsa and others say budget allocations have been insufficient, and policy choices have often favored politically popular agricultural programs over diversification.
Malawi’s public debt has also surged. A Reuters report in early 2026 put public debt at about 23.9 trillion kwacha (roughly $13.9 billion), with around 65% owed to domestic lenders. With limited options to obtain foreign exchange, the government announced it would sell about $30 million of gold reserves to fund fuel purchases—a move critics describe as unsustainable. Analysts advocate developing formal mining and tourism to bring stable foreign currency into the economy; Malawi has known deposits of gold and critical minerals.
Externally, global oil market uncertainty has pushed prices higher. Instability tied to the Iran conflict and threats to passage through the Strait of Hormuz have reduced prospects for quick, cheaper deliveries, keeping import costs elevated for countries dependent on foreign suppliers like Malawi.
For residents such as Jamali, the result is immediate and tangible: business activity is weakening as more resources are spent on procuring fuel. The combination of high global oil prices, narrow foreign exchange reserves, heavy public debt and a narrowly focused export base leaves Malawi vulnerable to recurrent fuel crises unless economic diversification and fiscal measures are pursued.
Edited by: Benita van Eyssen