BACKGROUND

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.

LPG PRICES ON THE INTERNATIONAL MARKET

The average FOB price for LPG increased in January 2021 when compared to the price noted in the month of November 2020 used in determining the ruling retail price. The FOB price increased by 4.46% from R10.13/kg as noted in the month of November 2020 to R10.60/kg.

EXCHANGE RATE MOVEMENT

Since the last price revision in December 2020, the Malawi Kwacha has depreciated against the South African Rand by 3.02% from K53.79/ZAR to K55.79/ZAR.

RESULTANT RETAIL PRICE

MERA reviewed the combined effect of the movement of the LPG FOB prices and exchange rate of the Malawi Kwacha to the South African Rand and noted that the landed cost of LPG increased by 4.96%. Under the Automatic Pricing Mechanism (APM), LPG did not qualify for a price adjustment since the change in landed cost is within the ±5% band.

 Therefore, the retail price of LPG has been maintained as presented below:-

Current Maximum LPG Retail Price (MWK/Kg) Recommended Maximum LPG Retail Price (MWK/Kg) % Change
            1,880.00                1,880.00   –

All operators are required to sell LPG at a price not exceeding this maximum retail price.

SIGNED          ____________________________________________

LEONARD CHIKADYA

BOARD CHAIRPERSON

MALAWI ENERGY REGULATORY AUTHORITY

19th February, 2021