Malawi Energy Regulatory Authority (MERA) considered recent trends in the world petroleum products prices and their impact on energy prices.


The average Free on Board (FOB) prices of Petrol, Diesel and Paraffin decreased by 17.44%,8.70% and 7.28% respectively in the month of August 2022 when compared to the average prices obtained in the month of July 2022 for Petrol and May 2022 for Diesel and Paraffin, used in determining the ruling pump prices.

The FOB price trend is summarized as follows:

Figure 1: FOB Price Trend


Since the last In Bond Landed Cost (IBLC) review in July 2022 for petrol and June 2022 for Diesel and Paraffin, the Malawi Kwacha has remained relatively stable trading at K1,036.25 against the United States Dollar.

The Exchange Rate trend since August 2021 is as presented below:

Figure 2: Exchange Rate Trend


MERA assessed the combined effect of the movement of the FOB prices, the exchange rate of the Malawi Kwacha against the United States Dollar, and changes in local factors that determine the maximum pump prices on the landed cost of petroleum products.

Due to the above factors, the landed costs of the three petroleum products changed as follows:

Table 1: In Bond-landed Cost Changes

Product Deemed In-Bond Landed Cost-(MWK/litre) Actual In-Bond Landed Cost-August 2022 (MWK/litre) % Change
Petrol 1,112.00    962.33 -13.46%
Diesel 1,113.35 1,149.22  3.22%
Kerosene    900.38    943.77  4.82%

According to the Automatic Pricing Mechanism (APM) only petrol qualify for a downward price adjustment since the change in its landed cost is beyond the ±5% trigger limit.

Therefore, the MERA Board has resolved to adjust downwards pump price of petrol, effective 15th September 2022. Diesel and paraffin pump prices have been maintained.

The new pump prices are as below:

Product Ruling Pump Price (MWK/litre) Recommended Pump price (MWK/litre) % Change
Petrol 1,946.00 1,746.00     -10.28%
Diesel 1,920.00 1,920.00         0.00
Kerosene 1,261.00 1,261.00         0.00

All operators are required to sell petroleum products at prices not exceeding the above maximum pump prices. 


Reckford Kampanje


14th September 2022