The Malawi Energy Regulatory Authority (MERA) has reduced prices of diesel and paraffin while maintaining the pump price for petrol.
According to MERA, a litre of Petrol pump price remains at K930.00 while the recommended pump prices for Diesel is K887.00 per litre from a ruling pump price of K924.00. Paraffin is now at K693.60 per litre from K710.50.
A statement dated March 7, 2020, signed by MRA Board Chairperson Rt. Rev. Dr. Joseph Bvumbwe and Dr. Collins Magalasi Chief Executive Officer, has cited that the reduction follows recent trends in the world petroleum products prices and changes in other macroeconomic fundamentals in the local market and their impact on energy prices.
According to the statement, key factors leading to the changes include the decrease of FOB price of petrol, diesel and paraffin by 7.10%, 13.63% and 10.60% respectively in the month of February this year as well as the slight depreciation of Malawi Kwacha by 0.25% to K743.87 against United States Dollar (USD) from K742.01/USD in November 2019 when the board did it’s last In Bond Landed Cost (IBLC) review.
“According to the Automatic Pricing Mechanism (APM), diesel and paraffin qualified for a price adjustment since the changes in their landed costs were beyond the ±5% trigger limit. Therefore, in line with the APM, the MERA Board resolved to revise downwards the pump prices of diesel and paraffin effective 7th March 2020” indicates the statement.
Meanwhile MERA has also indicated that effective 8th March 2020, resolved to revise downwards the Jet A-1 airfield prices at both international airports.
Effectively, Kamuzu International Airport Recommended Maximum Airfield Price is at K666.36/kg from K705.24/kg, while, Chileka International Airport recommended maximum Airfield Price is at K615.65/kg from current maximum Airfield Price of K655.6/kg.
In a related development, MERA has maintained the retail prices for Liquefied Petroleum Gas (LPG) to MWK1,744.75./Kg.
MERA has since urged operators to sell petroleum products and airfield prices at prices not exceeding the set maximum pump prices.