The Malawi Energy Regulatory Authority (MERA) considered trends in prices of petroleum products on the international market as well as exchange rate movements since pump prices were last reviewed in November 2023 and noted the following:

  1. Free-On-Board (FoB) prices of Petrol and Diesel decreased by -10.64 percent (%) and 18.14 percent (%), respectively.
  • The Malawi Kwacha remained stable trading at MWK1,751.00 against the United States Dollar (USD). However, importers were being quoted an average market exchange rate of MWK2,350.00/USD.  
  • The FOB prices, road freight rates, railage, insurance and handling, and in-transit losses at the market exchange rate of the MWK2,350.00/USD result in increased In-Bond Landed Costs (IBLC) by 52.42 percent (%) and 49.67 percent (%) for Petrol and Diesel, respectively.

Under the Automatic Pricing Mechanism (APM), prices are revised when changes in the petroleum products landed costs are beyond the ±5% trigger limit. Considering the differences between the actual and deemed IBLCs used under APM, both petrol and diesel qualify for price revision since the changes in their landed costs are beyond the ±5% trigger limit. Therefore, to enable sustained fuel supply and attain cost reflective pricing, Petrol and Diesel prices have been adjusted upwards effective 1st October 2025 as follows:

ProductRuling Pump Price (MWK/litre)Approved Pump Price (MWK/litre)% Change
Petrol2,530.003,499.00   38.30%
Diesel2,734.003,500.00  28.02%

By law, all operators are required to sell petroleum products at prices not exceeding the above approved regulated maximum pump prices.

Charles Kambauwa

BOARD CHAIRPERSON

30 September 2025