REVIEW OF THE RETAIL PRICE OF JET-A1 IN THE MONTH OF OCTOBER 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.

JET-A1 PRICES ON THE INTERNATIONAL MARKET

The average FOB price for Jet A-1 increased in September 2021 when compared to the average FOB price obtained in the Month of June 2021 on which the ruling airfield prices are based. The Jet A-1 average FOB price has increased by 4.91% from USD588.14 USD/MT to USD617.01 USD/MT.

EXCHANGE RATE MOVEMENT

Since the last In Bond Landed Cost review in July 2021, the Malawi Kwacha has depreciated by 0.37%, and is currently trading at an average exchange rate of K823.49/USD from K820.47 /USD.

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 4.55% and 4.62% 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 within the ±5% band. Therefore, in line with the Automatic Pricing Mechanism, the MERA Board resolved to maintain Jet A-1 airfield prices as follows:

All operators are required to sell Jet-A1 at prices not exceeding the above maximum recommended retail prices.

Signed                                                             Signed

Mr. Leonard Chikadya                                    Mr. Henry Kachaje

BOARD CHAIRPERSON                                      CHIEF EXECUTIVE OFFICER

9^th OCTOBER 2021                                            9^TH OCTOBER 2021