REVIEW OF THE RETAIL PRICE OF LPG IN THE MONTH OF SEPTEMBER 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 Liquefied Petroleum Gas (LPG) decreased in the month of August 2022 when compared to the price noted in the month of July 2022 used in determining the ruling retail price. The average Free on Board (FOB) price decreased by 8.75% from R17.82/kg as noted in the month of July to R16.26/kg in August 2022.
EXCHANGE RATE MOVEMENT
Since the last price revision in August 2022, the Malawi Kwacha has appreciated against the South African Rand by 2.10% trading at K62.78/ZAR from K64.13/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 7.73%. Under the Automatic Pricing Mechanism (APM), LPG qualified for a downward 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 15th September 2022. The LPG maximum retail price has been revised as follows:
|Current Maximum LPG Retail Price (MWK/Kg)||Proposed 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.
14th September 2022