Brace yourself: Petrol prices to be hiked

…MERA painfully defends decision

Mzuzu

Malawi Energy Regulatory Authority (MERA) has announced that it is reviewing prices of fuel and a price hike is expected to be announced soon.

MERA has announced in a statement today that the review follows changes in the prices of refined petroleum products on the international market and the exchange rate of the Malawi Kwacha against major currencies.

According to MERA, since the determination of the ruling pump prices in March 2021, the landed costs of Petrol, Diesel and Paraffin have increased by 20.44%, 12.03% and 12.23% respectively.

The landed costs of Jet A1 (aviation fuel) have reduced by an average of 1.38% when compared to the landed costs noted in July 2021 when the Jet-A-1 prices were last reviewed.

As at 7th September 2021, the Price Stabilisation Fund balances for Petrol, Diesel and Paraffin averaged K1.5 billion against the recommended minimum of K5 billion.

“Under the Automatic Pricing Mechanism, which was adopted in 2012, prices are adjusted when the change in the landed cost is beyond the ±5% trigger band.

“The MERA Board will consider the changes in the landed costs and other economic factors to establish appropriate prices of the petroleum products. The outcomes of the energy price reviews will be communicated in due course,” reads part of the statement.

Currently, Petrol is selling at MWK899.20/Litre, Diesel at MWK898.00/Litre, Paraffin is at MWK719.60/Litre and Liquefied Petroleum Gas MWK2,065.00/Kg.

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