Fuel reduced

The Malawi Energy Regulatory Authority (MERA) has reduced the pump prices of petrol, diesel and paraffin for the month of April as one way of reducing transport costs amidst Covid 19 Pandemic.

According to a press statement released and co-signed by Mera’s Board Chairperson, and Chief Executive Officer, Reverend Dr Joseph Bvumbwe and Collins Magalasi respectively, the reduction is in line with 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 United States Dollar as well as changes in local factors that determine the maximum pump prices.

“It was noted that the landed costs of petrol, diesel and paraffin decreased by 33.04%, 20.61% and 27.18% respectively, and that according to the Automatic Pricing Mechanism (APM) all the three products qualified for a price adjustment since the changes in their landed costs were beyond the ±5% trigger limit,” reads the statement in part.

MERA has, therefore, reduced the prices of petrol to MK 780. 00 from MK930. 00 per litre representing 16.3%, diesel to MK765.00 from MK887.00 per litre representing 13.75% and paraffin is at MK625.00 from MK693.60 per litre representing 9.7%.

On Saturday President Arthur Peter Mutharika directed MERA to reduce the fuel prices with immediate effect so as to cushion transport costs in the wake of Covid 19 pandemic.

Malawi has now registered four confirmed cases of the disease; three in Lilongwe and one in Blantyre.

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