REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN FOR THE MONTH OF MARCH 2021

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.

PETROLEUM PRODUCTS INTERNATIONAL PRICES

The average FOB prices of petrol, diesel and paraffin increased in the month of February 2020 by 13.31%, 13.59% and 12.55%, respectively when compared to the average prices which were applied when the In Bond Landed Costs (IBLC) were last revised.

EXCHANGE RATE MOVEMENT

Since the last IBLC review in February 2021 the Malawi Kwacha has depreciated, trading at K787.85/USD from K778.84/USD, representing a loss in value by 1.16%.

PUMP PRICES 

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 when compared the February 2021 IBLC, the March 2021 IBLC of petrol, diesel and paraffin increased by 9.60%, 9.70% and 8.93%, respectively. According to the Automatic Pricing Mechanism (APM) all the three products qualified for an upward price adjustment since the changes in their landed costs were beyond the ±5% trigger limit. 

Therefore, in line with the Automatic Pricing Mechanism, the MERA Board resolved to revise upwards pump prices of petrol, diesel and paraffin effective 9^th March, 2021. The revised pump prices are as follows:  

All operators are required to sell petroleum products at prices not exceeding the above maximum pump prices.

SIGNED

LEONARD CHIKADYA

BOARD CHAIRPERSON

MALAWI ENERGY REGULATORY AUTHORITY

8^th March, 2021