BLANTYRE-(MaraviPost)-The Malawi Energy Regulatory Authority (MERA) is maintaining the pump prices of petrol at K824.70 per litre, diesel price at K815.80 per litre and paraffin at K648.70 per litre; likewise the ESCOM tariff rate is maintained at K57.72 per kilowatt hour.
In a press statement made available to The Maravi Post, signed by the Board’s Chairperson, Bishop Joseph Bvumbwe, MERA said the average Free on Board (FOB) prices of petrol, paraffin and diesel declined by 0.99 percent, 2.74 percent and 0.95 percent respectively in the month of July.
The regulatory body said it assessed the combined effect of the movement of the FOB prices and exchange rate to the US Dollar and changes in local factors that determine the maximum pump prices, and noted that the landed cost of petrol, diesel and paraffin, increased by 1.91 percent, 5.84 percent and 4.82 percent, respectively.
“The FOB prices for petrol, paraffin and diesel decreased in July 2017, when compared to the averages obtained in the month of October, 2016 used in determining the current pump price,” reads the statement in part.
On electricity tariff, MERA said it considered a review of the tariff under the automatic Tariff Adjustment Formula (ATAF).
The statement said the decrease in inflation and kwacha depreciation remain the basis for consideration of tariff adjustments for March 2017.
Inflation decreased to 11.3 percent as at June 2017, while the Kwacha depreciated to K733 against the Dollar as at july 31, 2017.
“Applying these economic fundamentals to ATAF resulted into a -5.10 percent potential electricity tariff adjustment.
“The MERA Board however, considered the backlog of base tariff increase that has not yet been implemented and resolved that the electricity tariff be maintained at the current average K57.72/kWh to enable ESCOM to partly bridge the revenue gap created by the delays in tariff implementation,” concludes the statement.