REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN IN THE MONTH OF JANUARY 2020
Malawi Energy Regulatory Authority (MERA) considered recent trends in the world petroleum products prices and changes in other macroeconomic fundamentals in the local market and their impact on energy prices.
PETROLEUM PRODUCTS INTERNATIONAL PRICES
In December 2019, the average FOB prices of petrol, diesel and paraffin increased by 1.07%, 2.91% and 3.23%, respectively, when compared to FOB prices obtained in October 2019 used in determining the ruling pump prices.
EXCHANGE RATE MOVEMENT
Since the last In Bond Landed Cost (IBLC) review in November 2019, when pump prices were last revised, the Malawi Kwacha has depreciated by 0.23% to K743.69/USD from K742.01/USD.
MERA assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices and noted that the landed costs of petrol, diesel and paraffin increased by 0.94%,2.08% and 7.16%, respectively. The changes in the landed costs for petrol and diesel did not qualify the two products for a price adjustment since the changes in the landed costs were within the ±5% trigger limit. However, Paraffin qualified for an upward price adjustment as the change in its landed cost was beyond the ±5% trigger limit.
The MERA Board resolved to maintain the retail price of petrol, diesel and paraffin while cushioning the landed cost increase of paraffin through the Price Stabilization Fund as follows:
|Product||Ruling Pump Prices in MK per liter||Recommended Pump prices MK/liter||Percentage Change|
All operators are required to sell petroleum products at prices not exceeding the above maximum pump prices.
Rt. Rev. Dr. J.P. Bvumbwe Dr. Collins Magalasi
BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
9th January, 2020 9th January, 2020