The Malawi Energy Regulatory Authority (MERA) has increased price of Petrol by 20 percent and price of diesel by 31.25 percent.
MERA announced the increase in a statement early today.
Price of Petrol has been increased from K1,150.00 per litre to K1,380.00, Diesel has increased from K1,120.00 to K1,470.00 per litre while Kerosene has increased from K833.20 to K956.00
According to the statement, the regulatory body 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.
MERA noted that the average FOB prices of petrol, diesel and paraffin increased in the month of March 2022 by 45.42%, 70.82% and 66.68%, respectively when compared to FOB prices in September 2021, which were applied when determining the ruling prices.
“Oil prices continue to skyrocket due to fears of security of supply following the invasion of Ukraine by Russia. Economies have resorted to stock building in fear of supply disruption from the war, Russia being one of the largest oil producers,” MERA said.
Landed costs of Petrol, Diesel and Kerosene also increased between October and March hence the three products qualified for an upward price adjustment.
According to MERA, when reviewing the pump prices in April 2022, the Board in consultation with the Minister of Finance also resolved to minimize the resultant pump prices by reviewing and adjusting some of the levies such as the Malawi Bureau of Standard Cess, Road Levy, Energy Regulation Levy and the Rural Electrification Levy.
MERA has since advised all operators to sell petroleum products at prices not exceeding the set maximum pump prices.