Malawians across the country are feeling the weight of soaring cooking oil prices, with many struggling to make ends meet as the cost of living continues to rise. Over the past month, the price of cooking oil has surged by an average of 12%, forcing consumers to dig deeper into their pockets to purchase essential household items.
For many families, cooking oil is a staple, a basic necessity in every kitchen. However, the recent price hikes have made it increasingly difficult for ordinary Malawians to afford this once-affordable commodity, contributing to a broader cost-of-living crisis that is leaving households financially strained.
Spot checks across key retailers in Blantyre, Lilongwe, and Mzuzu reveal alarming price increases in popular cooking oil brands. The price of Kukoma and Purola cooking oil has risen from K88,000 to K99,000 for a 20-litre container, with Mulawe cooking oil increasing from K87,000 to K98,500 for the same quantity. Smaller-sized bottles are also affected.
In Zingwangwa Township in Blantyre, Chisomo James, a local consumer, shared how the price of a two-litre bottle of Kukoma had jumped from K8,500 to K10,300 in just a few weeks. As of yesterday, the price had risen further to K10,500 at major retail outlets.
In larger stores such as Sana Megastore, prices for Sunfoil have soared, with a two-litre bottle fetching K11,995, making it unaffordable for many low-income households.
These price hikes, though seemingly marginal to some, have had a profound impact on consumers who are already struggling with the rising costs of other basic goods and services.
Manufacturers attribute the price hikes to a variety of factors, including rising global prices of raw materials like palm oil and soybean oil, as well as the increasing costs of transportation and production. According to a Market Intelligence Report from the Reserve Bank of Malawi, crude vegetable oil prices--such as palm oil and soybean oil--have risen sharply in the third quarter of 2024, with palm oil prices climbing by 5.4% due to concerns over low production in key Southeast Asian countries.
Locally, the price of soybeans, the key ingredient in many cooking oils, has almost doubled from K800 to K1,500 per kilogram. This increase is primarily driven by higher global demand and lower local supply, creating a perfect storm of rising costs for manufacturers and consumers alike.
Rajneesh Dabral, the country manager for Export Trading Group (ETG)--which produces Purola cooking oil--acknowledged the challenges posed by the rising costs. "The price of raw materials and production costs have gone up significantly, and we are trying to make prices affordable. But the pressures from the market are too high," he said.
For many Malawians, these price increases are just one part of a broader cost-of-living crisis. John Kapito, the executive director of the Consumers Association of Malawi (CAMA), warned that the situation is unlikely to improve soon. "The kwacha continues to weaken, and the supply of raw materials remains low. The high prices are here to stay, and consumers will continue to feel the pressure," Kapito said.
For households already grappling with stagnant wages, rising fuel prices, and increased transport costs, the price of cooking oil is a further blow to their ability to make ends meet. The price of maize flour, fuel, and other foodstuffs has also increased significantly, stretching budgets even thinner.
Take Grace Moyo, a mother of four in Chilomoni Township, Blantyre, who works as a market vendor. She says she used to spend about K10,000 a month on cooking oil, but this is no longer enough to cover her family's needs. "I don't know how to make ends meet anymore. Everything is going up, but my income is the same," she said, adding that she has been forced to reduce the amount of cooking oil she uses and to switch to cheaper, less healthy alternatives.
Rising food prices are only one aspect of the broader economic challenges facing Malawi. The kwacha has been steadily weakening against major currencies, further increasing the cost of imports. At the same time, low productivity in key sectors like agriculture, coupled with a shortage of foreign exchange and rising global inflation, has left the economy vulnerable to external shocks.
For ordinary consumers, this has meant a painful erosion of their purchasing power. The food insecurity caused by rising prices is compounded by unemployment and underemployment, with many people struggling to find work or earn enough to support their families.
Despite government efforts to stabilize the economy, including calls for better fiscal management and support for local production, the cost-of-living crisis continues to deepen, particularly for vulnerable groups like low-income families, women, and children.
In response to rising food prices, the Competition and Fair Trading Commission (CFTC) has said it is monitoring the situation. In July 2024, the CFTC began investigating allegations of price-fixing by cooking oil manufacturers, following complaints that prices had been inflated by as much as 42%. While the CFTC has yet to release its findings, many consumers are hoping that stronger regulatory measures will help bring prices under control.
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However, in the absence of immediate government action to stabilize prices, Malawians are left to cope with the rising costs on their own, further exacerbating the economic strain on households. For many, cooking oil has become yet another symbol of how the country's economic woes are directly affecting the most vulnerable members of society.
As prices for cooking oil continue to rise, Malawians are left to navigate an increasingly difficult economic landscape. While manufacturers cite external factors like global commodity prices and logistical challenges, it is the ordinary citizen who bears the brunt of these increases. With wages largely stagnating and other essential goods rising in price, it is clear that Malawians are struggling more than ever to make ends meet.
As the cost-of-living crisis deepens, the government, regulatory bodies, and businesses must act urgently to find long-term solutions to stabilize prices and improve the purchasing power of Malawians. Until then, many will continue to face tough decisions about how to balance their household budgets--often at the expense of their basic needs.
