The Malawi Energy Regulatory Authority (MERA) has reduced pump prices, effective Friday, 8th May 2020.
This is according to a statement released on Wednesday and signed by MERA Chief Executive Officer Collins Magalasi.
Price of Petrol has been reduced from K780 to K690.50 per litre while Diesel will now be sold at K664.80 per litre from K765.00. The price of Kerosene is 441.70 per litre from K625.00.
Magalasi noted in the statement that the Kwacha has remained stable at K743.87/USD since prices were adjusted in March this year when the pump prices were also revised downwards.
He added that MERA has revised the prices after assessing the combined effect of FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices.
“It was noted that the landed costs of petrol, diesel and paraffin decreased by 37.50%, 19.89% and 41.49%, respectively and that according to the Automatic Pricing Mechanism (APM) all the three products qualified for a price adjustment,” he said.
Magalasi then told sellers of petroleum products to sell at prices not exceeding the maximum pump prices.
He also expressed hope that other sectors, including transportation, will respond accordingly to the pump price reduction.