The Malawi Energy Regulatory Authority [MERA] has resolved to revise the upward pump prices of Petrol, Diesel and Paraffin effective 9th March 2021.
Petrol which was at K834.60 will now be at K899.20, Diesel from K826.40 to K898.00, Paraffin from K613.20 to K719.60 while gas from K1, 880 per kilogram to K1,952.00.
In a statement dated 8th March 2021 signed by its Chairperson, Leonald Chikadya, says 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 adds since the last In Bond Landed Costs [IBLC] were reviewed in February 2021, the Malawi Kwacha has depreciated, trading at 787.85 US Dollars from 778.84 US Dollars representing a loss in value by 1.1 percent.
The statement says Mera assessed the combined effect of the movement of the 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.
…”It was noted that when compared with February 2021 IBLC, the March, 2021 IBLC of Petrol, Diesel and Paraffin increased by 9.60 percent, 9.70 percent and 8.93 percent respectively…,’’reads the statement in part.
MERA mentions according to the Automatic Pricing Mechanism [APM], all the three products, Petrol, Diesel and Paraffin, qualified for an upward price adjustment since the changes in their landed costs were beyond the 5 percent trigger limit.
The Authority is therefore advising all operators to sell petroleum products at prices not exceeding the maximum prices.
According to global fuel index research, Malawi has the highest fuel prices in the SADC region.
By Vincent Gunde