News of the move –motorists will have to dig deeper into their pockets following the upward adjustments of fuel prices by Malawi Energy Regulatory Authority (MERA).
Nyasa Times understands that the regulator have adjusted upwards fuel prices effective November 8, 2014.
Petrol is now MK 856.70 up from 796.20, per litre Diesel now selling at MK 865.90 from MK805.50.
“Malawi Energy Revenue Authority (Mera) has resolved that maximum pump price for petrol, diesel and paraffin be revised upwards effective November 8 2014,” reads the statement.
Mera cited the movement of international oil prices, exchange rate of the kwacha to the dollar and other macro-economic fundamentals.
The kwacha continues to lose ground against major trading currencies and has slipped further to K520 to a dollar in some foreign exchange bureaus and authorised dealer banks (ADBs.
Daily foreign exchange bureau rates show the kwacha selling at K520 to a dollar which is a steep fall from K460 to dollar in May when the country held elections.
Spot-checks revealed that on the parallel market or black market, a dollar is selling at K530 and buying at K565, indicating a steep fall in the value of the local unit which was selling at K455.
Financial analysts predict that the local currency will continue ceding against other foreign currencies in view of prevailing economic environment.
The increase in fuel prices could have an effect on transportation costs and the cost of power, which are some of the main drivers of inflation in Malawi .
Malawi’s major donors under the Common Approach to Budget Support (Cabs) are withholding budget support for Malawi worth $150 million (over K60 billion) following the revelations of massive public funds abuse at Capital Hill popularly known as cashgate.Follow and Subscribe Nyasa TV :