Tag Archives: Bishop Joseph Bvumbwe

Malawi

Malawi energy body rules out fuel price hike amid rising international oil price

Maneno Chimulala
Malawi energy body rules out fuel price hike amid rising international price

BLANTYRE-(MaraviPost)—Fuel prices in Malawi will not be increased despite rising oil prices on the international market as the Malawi Energy Regulatory Authority (MERA) has committed to cover  any anticipated importation loses by the fuel importers with Price Stabilization Fund, MaraviPost has learnt.

In a press statement, Friday,  made available to the MaraviPost, MERA says the average FOB (Free On Board) prices of petrol, diesel and paraffin increased in the month of June 2020 by 111.93%, 77.1% and 155.32%, respectively when compare to the average prices which were applied when determining the ruling prices.

According to MERA, the increase in the FOB prices on the international market is attributed to output cuts by the OPEC+, and increased demand of oil following the easing of COVID-19 lockdown restrictions in consuming countries.

“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 increased by 44.89%, 28.69% and 51.04%, respectively.

“Therefore, in line with the Automatic Pricing Mechanism (APM) all the three products qualified for an upward price adjustment since the changes in their landed costs were beyond the ±5% trigger limit. However, the MERA Board resolved to maintain pump prices at the current levels and that any anticipated importation loses by the fuel importers will be covered by the Price Stabilization Fund,” reads the statement partly.

This means that prices of Petrol, Diesel and Kerosene will remain at  K690.50, K664.80 and K441.70 per litre respectively.

Malawi

MERA maintain ESCOM tariff and fuel prices despite declining inflation 

Maravi Post correspondent

Gas Station in Malawi
Fuel prices maintained

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.

Malawi

MERA board chairman Bishop Joseph Bvumbwe, defies court order, risks imprisonment

Maravi Post correspondent

Bishop Bvumbwe

BLANTYRE-(MaraviPost)— Malawi Energy Regulatory Authority (MERA) Board Chairperson, Bishop Joseph Bvumbwe, and other members of the board, risk imprisonment following failure by the energy-regulator to reinstate Raphael Kamoto as Chief Executive Officer.

According to our sister paper, the Daily Times, Judge Charles Mkandawire on Monday last week granted Kamoto leave to apply for an order of committal after an application was filed at the High Court in Lilongwe through his lawyer George Mtchuka Mwale.

Kamoto, together with Director of Finance Elias Hausi, were fired on February 6, 2017 for abuse of office.

Kamoto and Hausi are accused of diverting K3 billion from the Price Stabilisation Fund (PSF), to Agricultural Development and Marketing Corporation (Admarc), to be used in the procurement of maize.

However, on March 16, 2017, he obtained an injunction restraining MERA from dismissing Kamoto and Hausi.

Apart from Bvumbwe, other MERA board members who may be imprisoned for contempt of court, are Felisa Kilembe, Peterson Zembani, Khwauli Msiska, Patrick Matanda, and Lewis Mhango.

In an affidavit he swore on March 23, 2017, in support of an ex-parte application for leave to apply for an order of committal, Kamoto wrote that when he reported for work on March 20, 2017, he was informed that he would not be allowed to work as Chief Executive Officer as he was on suspension.

In the affidavit, Kamoto also wrote that MERA’s lawyer, Gabriel Chembezi, wrote his lawyer informing him about his suspension at MERA. Kamoto, however, said there was no reference in the injunction to the effect that he would revert to being suspended from employment.

“Such an interpretation would be preposterous because I can only be on suspension if I am waiting for a disciplinary hearing at a future date. This is not the case in the present circumstances,” reads the affidavit.

It adds: “That the defendant’s action in preventing me from resuming my duties, is in utter disregard of the order of injunction. That it is my respectful submission that unless the defendant’s board is committed to prison for contempt of court, they are likely going to continue to disobey the said order which was duly served on them.”