The Transporters Association of Malawi (TAM) has welcomed the reduction in diesel prices but says the move is unlikely to improve the profitability of transport operators unless the government protects the industry from automatic cuts in transport rates.

The reaction follows the Malawi Energy Regulatory Authority (MERA) decision to reduce the pump price of diesel by 7.02 percent, from K6,306 to K5,863 per litre, effective 1 August 2026, while petrol remains unchanged and kerosene has also been reduced.

TAM Director Frank Banda told Capital FM that transporters have historically failed to benefit from lower fuel prices because clients quickly reduce the rates they pay for transporting goods, while the prices of goods sold on the market remain unchanged.

Banda says the burden of fuel price reductions is often borne by transporters alone, arguing that the savings are not shared across the supply chain.

He has since called on the government to introduce minimum transport rates to shield the industry from arbitrary reductions whenever fuel prices fall.

According to Banda, the association has already been notified that transport rates for the weight cargo sector have been revised downwards, with a similar adjustment expected in the break-bulk cargo segment.

He says without measures to protect transporters, the latest fuel price review will have little positive impact on the industry.

MERA says the latest price adjustments were made under the Automatic Pricing Mechanism following a decline in international fuel prices.