Malawi Energy Regulatory Authority (MERA) has resolved that the pump prices and wholesale prices of petrol, diesel and paraffin be revised downwards.
MERA’s chief executive director Collins Magalasi says in a statement that the move follows assessment of the impact of FOB prices on the international market and exchange rate movements on the landed cost of petroleum products into the country.
Following the revised prices have put maximum wholesale Price Per 1000 litres at MK 612,060.00 while diesel will be sold at MK 586,360.00 and paraffin will be sold at 363,260.00.
Maximum Retail price per litre of Petrol will be at MK690.50 while diesel price will be at MK664.80 and paraffin will be sold at MK441. 70
“The revised wholesale prices, pump prices and trading margins effective 8th May, 2020 at 00.01 a.m,”says Magalasi,
He says the authority is aware that just like all other sectors of the economy, the Liquid Fuels and Gas Industry has been affected negatively by the impactof Covid-19.
Magalasi says this is especially true following the consecutive downward pump price revisions in April 2020 and May 2020 as a result of a plunge of oil prices on the international market.
“ It is for this reason that the Authority has resolved to grant a temporary increase of the retail margin by K3.00/litre subject to monthly reviews, to allow retailers to recover the losses resultant from the downward pump price revisions and to make up for the lost revenue due to the drop in demand for petroleum products as a result of preventive measures that have been put in place to curb the spread of the disease, ” he says.
The petroleum retailers are advised that it is mandatory that all service stations display prices of petroleum products on visible signage within the premises.
Meanwhile, MERA is appealing to transporters to consider reducing fares in response to the fuel reduction.