In less than a month fuel prices have been slashed by a 10% margin in Malawi in the wake of recent revelations that the commodity has one of the highest prices in non producing African Countries.
Maravi Post has information that petrol will now be selling at K696.30 from K760.40 while Diesel is at K705.50 per litre from K785.40 Paraffin is now at K609.30 from K678.80.
On 10th January, the Malawi Energy Regulatory Authority (MERA) announced of new pump prices, after experts piled pressure on MERA in recent weeks to effect the changes owing to the same factors as provided for by the Automatic Fuel Pricing Mechanism which Malawi follows.
The development will render a reduction of goods and services in the country.
Recently, Global Petrol Prices.com, Research named Malawi’s pump prices for petrol and diesel as one of highest in the world.
The latest data have indicated the situation to causes an increase to living and operating business costs.
The data, shows that as of January 26 2014, the retail prices of diesel in Malawi was $1.56 (K745), while petrol was selling at $1.51 (K721) per litre. These are the highest price compared to other African countries.
The situation that led to high transportation costs.
Minister of Natural Resources, Energy and Mining Atupele Muluzi, highlighted the situation to be the major contributor to high living standards.
Muluzi explained ” Malawi has the highest fuel prices, but this is due to the logistical challenges that we experience as a landlocked country. We rely on road transport, which unfortunately is not cheap.”
Muluzi uttered to bring down the cost of fuel, government is negotiating with fuel importers to use the railway line.
Mera acting chief executive officer Elias Hausi backed Muluzi on reasons why Malawi has the high fuel price.
He said, “Although global fuel prices have fallen by about 50 percent, other transportation costs and taxes have not fallen by the same margin.”
According to Global Petrol Prices.com, all countries have access to the same diesel prices on international markets, but decide to impose different taxes, which lead to retail prices being different.
