REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN IN THE MONTH OF OCTOBER 2019.

BACKGROUND

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.

PETROLEUM PRODUCTS INTERNATIONAL PRICES

In August 2019, the average FOB prices of Petrol, Diesel and Paraffin increased by 20.53%, 14.16% and 10.69%, respectively, when compared to the averages obtained in the month of December 2018 used in determining the ruling pump prices.

EXCHANGE RATE MOVEMENT

Since the last In Bond Landed Cost (IBLC) review in January 2019, when pump prices were last revised, the Malawi Kwacha slightly depreciated by 0.31% to K742.06/USD from K739.78/USD.

 

PUMP 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 and noted that the landed costs of Petrol, diesel and paraffin increased by 14.27%, 9.70% and 7.83%, respectively. The changes in the landed costs qualified petrol, diesel and paraffin for a price revision since the changes in the landed costs were beyond the ±5% trigger limit.

However, the MERA Board resolved to cushion the impact of the increased landed cost of the three products through the Price Stabilization Fund. Fuel pump prices have therefore been maintained as implemented on 12th January 2019 as presented below:

 

 

 Product

Ruling Pump Prices in MK per liter

Recommended Pump prices MK/liter

Percentage Change

Petrol

868.00

868.00

-

Diesel

874.00

874.00

-

Paraffin

710.50

710.50

-

       

 

All operators are required to sell petroleum products at prices not exceeding the above maximum pump prices.

 

SIGNED

 

Rt. Rev. Dr. Joseph P. Bvumbwe                  Dr. Collins Magalasi

BOARD CHAIRPERSON                                  CHIEF EXECUTIVE OFFICER

8th October, 2019                                           8th October, 2019