Malawi Energy Regulatory Authority (MERA) 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 assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the US Dollar as well as changes in local factors that determine the maximum pump prices and noted that the landed cost of Petrol, diesel and paraffin increased by 15.35%, 23.51% and 23.28%, respectively.
The change in the landed costs for all the three products is beyond the ±5% trigger limit which qualifies petrol, diesel and paraffin for an upward pump price adjustment.
The MERA Board, however, resolved to maintain pump prices for all the three products and apply the accumulated funds in the Price Stabilisation Fund (PSF) to cover the increased landed cost of the three products.
For the month of December 2017, fuel pump prices have therefore been maintained.
Petrol was 824.70 and remains 824.70
Diesel was 815.80 and remains 815.80
Paraffin was 648.70 and remains 648.70
Prices were also maintained for Liquefied Petroleum Gas (LPG) and Jet A-1 fuel.
The information above is contained in a press release signed by MERA Chief Executive Officer (CEO) Dr. Collins Magalasi dated 08th December 2017
Magalas in the press release said all operators are required to sell petroleum products at prices not exceeding these maximum pump prices.