Malawi fuel crisis deepens as oil shortages spread

Malawi's fuel crisis amid uncertainty in the oil market shows no signs of abating. Even as the government reassures citizens that the country is not running out of fuel, most filling stations are dry, and the few with fuel are experiencing long queues.

"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," businessperson Anthony Jamali told DW from the capital Lilongwe.

Another man, Isaac Banda, seemed disheartened by the struggle to get fuel: "Everything has risen in price, depending on the food and some of the groceries. It's become very difficult to travel from one place to another now because of the fuel crisis."

But it's not just in the urban centers like Lilongwe that citizens are feeling the pinch. Rural farming areas, which need diesel to run agricultural equipment, are also facing an uphill struggle. Essential services in the health sector are not exempt from fuel shortages or eyewatering prices, either.

Fuel shortages add strain to Malawi's health services

Maziko Matemba, a health rights activist based in Blantyre, told DW the fuel shortages "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."

Matemba hopes the state will prioritize ambulance services, adding: "The hospitals, their budget is very low and they cannot be able to recoup money on time."

For many years, landlocked Malawi has had Africa's highest fuel costs, and this week it recorded the second highest fuel prices in the world. In Malawi, a liter of petrol costs around $3.83 (€3.28), while in neighboring Zambia, it costs $1.50. 

Analysts say that while the fuel crisis in Malawi is not new, it can have severe consequences for the current government.

"The situation was so bad in 2011 that people went to the streets. We had the demonstrations across the country on a number of issues, two of which were the fuel shortages," said Michael Kaiyatsa, a human rights activist and Chairperson of the Human Rights Defenders Coalition (HRDC). 

Malawi's foreign exchange shortages caused by government policies

Kaiyatsa explains that Malawi's reliance on tobacco sales as a foreign currency earner is flawed.

"Tobacco is no longer fetching good prices mainly because of the World Health Organization's ban on public smoking. And that has really negatively affected our economy," he said.

Kaiyatsa, and other observers including the World Bank say Malawi urgently needs to diversify its struggling economy to bring in hard currency such as US dollars so that it can more easily trade on the world market.

"There have been proposals put forward by experts that maybe we need to promote tourism. The last administration made tourism one of the five key priority areas alongside agriculture, but when you look at the budget allocations to this sector, it has been very, very pathetic," he said.

He added that politicians have often focused on policies and investments that help them win votes. As a result, funding tends to flow into areas like agriculture—especially into widely supported initiatives such as the farm input subsidy program.

Malawi's debt grows

A Reuters report in early 2026 put Malawi's public debt at around 23.9 trillion kwacha ($13.92 billion, €11.90 billion), with roughly 65% of that total owed to domestic lenders. The country can ill afford to borrow more money, but the government has limited options to procure foreign exchange, which is why the government announced last week that it would sell about $30 million worth of gold reserves to fund fuel purchases.

Malawi's 'gold fever': scramble to contain illegal mines

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But for Kaiyatsa and other analysts, these actions are unsustainable. Instead, they see developing the tourism and formal mining sectors as viable ways to bring money back into the country. Malawi has known deposits of gold and critical minerals.

Middle East fuel crunch shows no signs of easing

The uncertainty around the ceasefire in the Iran war and the closure of the Strait of Hormuz means oil prices have remained high, with little prospect of speedy oil deliveries resuming.

Meanwhile, Malawi's overreliance on foreign suppliers for vital fuel continues to cripple businesses and daily life for Lilongwe residents like Anthony Jamali.

"We all need fuel. Business is no longer providing us with resources, but rather we are investing resources," he said.

Edited by: Benita van Eyssen