REVIEW OF JET A-1 PRICES IN THE MONTH OF SEPTEMBER 2020

BACKGROUND

Malawi Energy Regulatory Authority (MERA) considered recent trends of the oil prices on the international market and changes in other macroeconomic fundamentals in the local market and their impact on Jet A-1 airfield prices.

JET A-1 PRICES ON THE INTERNATIONAL MARKET

The average FOB price for Jet A-1 decreased in March 2020 when compared to the average FOB price obtained in the Month of February 2020 on which the ruling airfield prices are based. The Jet A-1 average FOB price declined by 40.85% from USD484.55 USD/MT to USD286.60 USD/MT.

EXCHANGE RATE MOVEMENT

When compared to the exchange rate noted during the last IBLC revision in March 2020, the Malawi Kwacha has remained stable trading at K743.81/USD.

JET A-1 PRICES

The MERA Board considered the combined effect of the movement of the Jet A-1 FOB prices and exchange rate of the Malawi Kwacha to the US Dollar as well as changes in local factors that determine the Jet A-1 prices. The Board noted that the Jet A-1 landed cost decreased by 25.46% and 26.10% at Kamuzu and Chileka International Airports, respectively. Under the Automatic Pricing Mechanism, considering the differences between the actual and deemed IBLCs, Jet A-1 qualified for a price adjustment at both Kamuzu and Chileka International Airports since the IBLC changes were below the ±5% band.

MERA Board resolved to revise downwards the airfield prices at both international airports in response to the declining landed cost. The airfield prices have therefore been revised downwards as follows effective 2^nd April 2020.

All operators are required to sell Jet A-1 at airfield prices not exceeding the maximum recommended Jet A-1 prices.

SEAL    _____________________________________________________

Rt. Rev. Dr. J.P. Bvumbwe                 Dr. Collins Magalasi

BOARD CHAIRPERSON                      CHIEF EXECUTIVE OFFICER

2^nd April, 2020                                  2^nd April, 2020