REVIEW OF THE RETAIL PRICE OF JET-A1 IN THE MONTH OF JULY 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.
JET-A1 PRICES ON THE INTERNATIONAL MARKET
The average FOB price for Jet-A1 increased in the month of June 2020 when compared to the price noted in the month of March 2020 on which the ruling airfield prices are based. The Jet-A1 average FOB price rose by 8.7% from USD286.60/MT to USD312.02/MT.
EXCHANGE RATE MOVEMENT
Since the last price revision in April 2020, the Malawi Kwacha has slightly depreciated, trading at K744.49/USD from K743.43/USD, representing a loss in value of 0.14%.
RESULTANT RETAIL PRICE
MERA reviewed the combined effect of the movement of the Jet-A1 FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar and noted that the landed cost of Jet-A1 increased by 4.39% and 4.54% for KIA and Chileka Airports, respectively. Under the Automatic Pricing Mechanism (APM), Jet-A1 did not qualify for a price adjustment since the change in landed cost was noted to be within the ±5% band. Therefore, in line with the APM principle, the MERA Board resolved to maintain the maximum airfield price for Jet-A1 at K510.72 and K457.07 per litres at Kamuzu and Chileka International Airports, respectively.
All operators are required to sell Jet-A1 at prices not exceeding the above maximum recommended retail prices.
Rt. Rev. Dr. J.P. Bvumbwe Dr. Collins Magalasi
BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
9TH JULY 2020 9TH JULY 2020