Malawi fuel road levy goes up: Fuel pump prices maintained

The Malawi Energy Regulatory Authority (Mera) has maintained the March 12 2013 fuel pump prices but revised the fuel road fund levy upwards by an average of 246 percent.

The roads fund levy on petrol has been increased from K12 (about $0.03) in March to K44 (about $0.11), representing 267 percent beginning this weekend. Road levy on diesel has been revised from K12 in March to K39 (about $0.09) which represents 225 percent.

The adjustments come amid pressure from the European Union—a major donor in the road sector—which threatened to suspend up to K9 billion in budgetary support after government reduced the road levy by 63 percent on average in March, according to published reports.

“We would have to suspend any further disbursements, which would be in the vicinity of 12-16 million euros in the current budget and the same in the forthcoming budget,” EU Ambassador Alexander Baum said as quoted  in the press.

 Fuel pump prices maintained
Fuel pump prices maintained

Weekend Nation reported that  on the April 5 2013 decision made at a meeting held at Wamkulu Palace in Lilongwe, the import duty and excise duty importers pay on petrol, diesel and paraffin was also revised significantly—a relief on the part of importers.

On the other hand, Mera has increased retail price for liquified petroleum gas (LPG) by 22 percent.

This is contained in a communication from Mera chairperson Lyton Zinyemba to stakeholders such as the Petroleum Importers Limited (PIL), the National Oil Company of Malawi (Nocma), Energem Petroleum Limited (EPL), Edkom Oil Company (EOC) and Ecosave Fuels Limited (EFL) dated Friday April 5.

“Mera noted the increase in landed cost of LPG following depreciation of the Malawi kwacha since the last revision of January 2013. In order to provide for recovery of importation cost by LPG suppliers in the country, Mera has adjusted upwards by 22% the maximum retail price for LPG from K1 692.89 (about $4) to K2 071.75 (about $5.17) per kilogramme,” said Zinyemba in the letter.

In another letter addressed to Simso Investments Oil and Transport Company (SIOTC) for the attention of Mr. Simama, Mera chief executive officer Alexon Chiwaya cemented the issues of fuel pump price.

“The Malawi Energy Regulatory Authority (Mera) has in line with the automatic pricing mechanism (APM) maintained pump prices for petrol, diesel and Paraffin. However, the road levy, import duty and excise duty have been adjusted,” said Chiwaya.

The prices of fuel have been maintained at K714.90 (about $1.78) for petrol, K693.80 (about $1.73) for diesel and K613.90 (about $1.53) for paraffin.

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