REVIEW OF LIQUIFIED PETROLEUM GAS (LPG) RETAIL PRICE IN THE MONTH OF MAY 2022
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 Free on Board (FOB) price for LPG increased in the month of April 2022 when compared to the price noted in the month of March 2022 used in determining the ruling retail price. The FOB price increased by 5.5% from R15.73/kg as noted in the month of March 2022 to R16.60/kg.
EXCHANGE RATE MOVEMENT
The Malawi Kwacha has slightly appreciated against the South African Rand by 9.03%, trading at K61.53/ZAR from K67.63/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 decreased by 5.21%. Under the Automatic Pricing Mechanism (APM), LPG qualified for a price adjustment since the change in landed cost was noted to be beyond the ±5% band.
Therefore, the MERA Board resolved to revise downwards the retail price of LPG effective 8th May, 2022.
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.
7th May 2022