REVIEW OF THE RETAIL PRICE OF LPG IN THE MONTH OF MARCH 2021
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 the month of February 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 17.19% from R10.13/kg as noted in the month of November 2020 to R11.86/kg recorded in the month of February 2021.
EXCHANGE RATE MOVEMENT
Since the previous price revision in December 2020, the Malawi Kwacha has appreciated against the South African Rand by 2.19% trading at K52.61/ZAR from K53.79/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 8.22%. Under the Automatic Pricing Mechanism (APM), LPG qualified for an upward price adjustment since the change in landed cost was beyond the ±5% band.
Therefore, in line with the Automatic Pricing Mechanism, the MERA Board resolved to revise upwards the retail price of LPG effective 9th March, 2021.
The LPG maximum retail prices have been revised as follows:
|Current Maximum LPG Retail Price (MWK/Kg)||Recommended Maximum LPG Retail Price (MWK/Kg)||% Change|
All operators are required to sell LPG at a price not exceeding the above maximum recommended retail price.
MALAWI ENERGY REGULATORY AUTHORITY
8th March, 2021