REVIEW OF THE RETAIL PRICE OF LPG 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.
LPG PRICES ON THE INTERNATIONAL MARKET
The average FOB price of LPG decreased in the month of October 2022 when compared to the price noted in the month of August 2022 used in determining the ruling retail price. The FOB price decreased by 1.9% from R16.26/kg as noted in August 2022 to R15.96/kg.
EXCHANGE RATE MOVEMENT
As the South African Rand continued to weaken against the US Dollar, the Malawi Kwacha appreciated against the South African Rand by 5.56% in November 2022 trading at K59.28/ZAR from K62.78/ZAR noted in September 2022.
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 8.85%. 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, MERA Board resolved to revise downwards retail price of LPG effective 12th November 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.
11th November 2022