Malawi Energy Regulatory Authority (MERA) has today maintained fuel prices at K1,380 per litre for Petrol, K1,470 for Diesel and K956 for Paraffin.
According to MERA, in the month of April 2022, average Free on Board (FOB) prices of diesel and paraffin increased by 4.71% and 0.44% respectively while FOB prices of Petrol decreased by 2.25% when compared to the average prices obtained in the month of March 2022 which were used in determining the current pump prices.
The authority added that on the global market Diesel prices continue to skyrocket due to fears of security of supply and global supply chain disruption following the invasion of Ukraine by Russia. Economies, MERA said, have resorted to stock building in fear of supply disruption from the war thereby increasing the demand of oil globally.
On exchange rate, MERA said the Malawi Kwacha has remained stable against the USD since March 2022, trading at MK825.00 to $1.00.
MERA assessed the combined effect of the movement of the FOB prices, the exchange rate of the Malawi Kwacha against the United States Dollar, and changes in local factors that determine the maximum pump prices on the landed cost of petroleum products.
According to MERA, Diesel qualified for an upward price adjustment whereas Petrol and Paraffin did not qualify for the price revision as the changes in landed cost were within the ±5% trigger limit.
“The Board noting the marginal movements in oil prices on the world market and that Price Stabilisation Fund (PSF) collections in the month would ably cover any cost differences resolved to maintain fuel pump prices until the next review in June 2022.
“The Board further considered the adjustment of industry margins following an assessment of the oil business operating environment and its impact on the licensed operators. The adjustments have been implemented through the PSF in order to maintain the pump prices,” MERA said in a statement today signed by its chairperson Reckford Kampanje.
MERA has since advised all operators not to sell petroleum products at prices not exceeding the above maximum pump prices.