Update on the Landed Costs of Petroleum Products
The Malawi Energy Regulatory Authority (MERA) is mandated to regulate the energy sector in Malawi in a fair, transparent, efficient, and cost-effective manner for the benefit of the consumers and operators. As part of this mandate, MERA is responsible for determining prices of energy sales and services.
The key factors that affect the landed costs of petroleum products are the prices of refined petroleum products on the international market and the exchange rate of the Malawi Kwacha against major currencies.
Since the determination of the ruling pump prices in March 2021, the landed costs of Petrol, Diesel and Paraffin have increased by 20.44%, 12.03% and 12.23% respectively. The landed costs of Jet A1 (aviation fuel) have reduced by an average of 1.38% when compared to the landed costs noted in July 2021 when the Jet-A-1 prices were last reviewed.
As at 7th September 2021, the Price Stabilisation Fund balances for Petrol, Diesel and Paraffin averaged K1.5 billion against the recommended minimum of K5 billion.
Under the Automatic Pricing Mechanism, which was adopted in 2012, prices are adjusted when the change in the landed cost is beyond the ±5% trigger band.
The MERA Board will consider the changes in the landed costs and other economic factors to establish appropriate prices of the petroleum products. The outcomes of the energy price reviews will be communicated in due course.
For more information:
Phone: 01 774 103/135 or 01 775 810