REVIEW OF THE RETAIL PRICE OF LPG IN THE MONTH OF JUNE 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 FOB price for LPG increased in the month of May 2022 when compared to the price noted in the month of April 2022 used in determining the ruling retail price. The FOB price increased by 9.63% from R16.60/kg as noted in the month of April to R18.20/kg.
EXCHANGE RATE MOVEMENT
Since the last price revision in April 2022, the Malawi Kwacha has depreciated against the South African Rand by 16.47% trading at K71.66/ZAR from K61.53/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 25.69%. Under the Automatic Pricing Mechanism (APM), LPG qualified for an upward price adjustment since the change in landed cost was noted to be beyond the ±5% band.
Therefore, the MERA Board resolved to revise upwards the retail price of LPG effective 23rd June 2022. The LPG maximum retail price has 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.
22nd June 2022