REVIEW OF THE RETAIL PRICE OF JET-A1 IN THE MONTH OF NOVEMBER 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.
JET-A1 PRICES ON THE INTERNATIONAL MARKET
The average FOB price of Jet A-1 decreased in the month of October 2022 when compared to the average FOB price obtained in the month of August 2022 on which the ruling airfield prices are based. The Jet A-1 average FOB price decreased by 5.26% from USD1,001.14/MT to USD948.43/MT.
EXCHANGE RATE MOVEMENT
Since the last In Bond Landed Cost (IBLC) review in September 2022, when airfield prices were last revised, the Malawi Kwacha has remained stable trading at K1,036.25 against the United States Dollar.
RESULTANT RETAIL PRICE
MERA reviewed the combined effect of the movement of the Jet-A1 FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar and noted that the landed cost of Jet-A1 increased by 1.51% and 1.53% for Kamuzu and Chileka airports respectively. Under the Automatic Pricing Mechanism (APM), Jet-A1 does qualify for a price revision since the change in landed cost was within the ±5% band.
Therefore, in line with the Automatic Pricing Mechanism, the MERA Board resolved that Jet A-1 airfield prices be maintained as implemented on 15th September 2022. The prices have been maintained as follows:
|Airport||Current Maximum Airfield Price (Kwacha per Litre)||Recommended Maximum Airfield Price (Kwacha per Litre)||% Change|
All operators are required to sell Jet-A1 at prices not exceeding the above maximum recommended retail prices.
11th November 2022