REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN FOR THE MONTH OF APRIL 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 March 2020 FOB price of petrol, diesel and paraffin decreased by 45.61%, 34.11% and 40.85% respectively, when compared to FOB prices which were applied when determining the ruling prices.
EXCHANGE RATE MOVEMENT
Since the last In Bond Landed Cost (IBLC) review in March 2020, when pump prices were last revised, the Malawi Kwacha has remained stable trading at K743.87/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. It was noted that the landed costs of petrol, diesel and paraffin decreased by 33.04%, 20.61% and 27.18%, respectively and that according to the Automatic Pricing Mechanism (APM) all the three products 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 effective 2nd April, 2020 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.
It is the expectation of MERA Board that other sectors, including transportation, will respond accordingly to this pump price reduction.
Rt. Rev. Dr. J.P. Bvumbwe Dr. Collins Magalasi
BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
2nd April, 2020 2nd April, 2020