Update on the Landed Costs of Petrol, Diesel and Paraffin
The Malawi Energy Regulatory Authority (MERA) is mandated to determine prices of energy sales and services. The key determinants of the landed costs of petroleum products are the exchange rate of the Malawi Kwacha against the United States Dollar and the Free on Board prices of refined petroleum products on the international market. Since the establishment of the ruling maximum pump prices in October 2021 the landed costs of Petrol, Diesel and Parafiin have increased by 16.16%, 24.67%, and 24.71% respectively. The movements in the landed costs are as captured in the table below:
|MONTH||PETROL (MWK/Litre)||DIESEL (MWK/Litre)||PARAFFIN (MWK/Litre)|
Under the Automatic Fuel Pricing Mechanism, pump prices qualify for an adjustment when the landed costs of petroleum products move beyond the ± 5% trigger limit. The MERA Board, when instituted, will consider the changes in the landed costs and other economic factors to determine appropriate prices of the petroleum products.
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