Malawi has reduced petrol and diesel prices . Nyasa Times understands that the cut is in response to continued appreciation of the kwacha.
Malawi Energy Regulatory Authority (Mera) official said they dropping the price of petrol which will be selling MK694 from MK715 and diesel will be at MK677 from MK693.5 in what can be considered as great news for motorists.
Paraffin for Industrial Use will be at MK594.
Economic experts have attributed the stabilisation and appreciation of the kwacha to proceeds from tobacco sales in the country’s auction floors.
Tobacco, Malawi’s main foreign exchange earner, accounts for about 60 percent of the country’s total export earnings.
This year, government expects tobacco proceeds to hit $300 million up from $177 million earned in the 2012 season, when production was at its lowest level of 79 million kilogrammes in 18 years.
Reserve Bank of Malawi (RBM) Governor Charles Chuka said this week the easing of Malawi’s inflation rate and the kwacha appreciation, an increase in the value of the kwacha currency with respect to other foreign currencies, have come a month earlier than anticipated.
The RBM boss predicted a downward adjustment in interest rates in the course of the year.