The Malawi Energy Regulatory Authority has used the Price Stabilisation Fund (PSF) and Automatic Pricing Mechanism (APM) to reduce and stabilize fuel prices for consumers.
Speaking during a press briefing today, MERA CEO Dad Chinthambi explained that the PSF is being applied to cushion Malawians from sharp fluctuations in global fuel markets by absorbing excess costs when import prices rise. At the same time, the APM is guiding regular, transparent adjustments to pump prices based on changes in international oil prices, exchange rates, and other cost factors.
As part of the latest review, MERA announced a 6.94% reduction in the pump price of petrol and a 1.96% reduction in kerosene, while prices for other fuel products remain unchanged. The adjustments reflect the application of both the PSF and APM mechanisms.
“MERA’s mandate is to ensure fair and stable fuel pricing,” CEO Dad Chinthambi said during the briefing. “Through the PSF and the APM, we are working to reduce the impact of volatile international oil prices on Malawian households and businesses while maintaining transparency in how prices are set.”
The Authority did not specify the duration of the stabilization measures but reiterated its commitment to monitoring global market trends and adjusting pricing in line with the fund’s capacity and APM calculations.