Malawi fuel prices maintained

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The Malawi Energy Regulatory Authority (MERA) has maintained fuel prices which were implemented in November last year.

This means that the prices remain at MK824.70 per litre for petrol, MK815.80 per litre for diesel and MK648.70 per litre for paraffin.

In a statement issued by the regulatory body and signed by its chairperson Reverend Joseph Bvumbwe, the energy regulatory body says it considered recent trends in the world petroleum products prices and changes in other macroeconomic fundamentals in the local market and their impact on energy prices.

The body says the average Free on Board (FoB) prices of petrol and diesel slightly increased while FoB price of paraffin used to determine pump prices registered a marginal decrease in the month of May 2017 when compared to the averages obtained in the month of October 2016 used in determining the ruling pump prices.

“The FOB prices for petrol and diesel increased by 1.77% and 0.05% respectively while the FOB price for paraffin decreased by 0.02 % in May 2016 when compared to FOB prices obtained in October 2016,” says the statement.

The regulatory authority took into account the combined effect of the movement of the FoB prices and exchange rate of the Malawi Kwacha to the US dollar and other factors and noted that the landed costs qualified the three products for a pump price hike but resolved to maintain the prices.

“The MERA Board considered the accumulated Petroleum Subsidy Fund balance in June, 2017 and has therefore resolved to maintain fuel pump prices by covering in full In Bond Landed Cost increases through use of the stabilization Fund,” reads the statement.

MERA has since cautioned all operators to sell the petroleum products at prices not higher than the set prices.

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