Malawi Energy Regulatory Authority (MERA) considered recent trends of the oil prices on the international market and changes in other macroeconomic fundamentals in the local market and their impact on Jet A-1 fuel prices.
JET A-1 PRICES ON THE INTERNATIONAL MARKET
The average FOB price for Jet A-1 increased in March, 2018 when compared to the average FOB price obtained in the Month of June, 2017 on which ruling airfield prices are based. The FOB price of Jet A-1 increased by 38.88% from USD440.35 USD/MT to USD611.58 USD/MT.
EXCHANGE RATE MOVEMENT
The Malawi Kwacha has remained stable since the last price review in July 2017 trading at K733.95/USD.
Jet A-1 PRICES
The MERA Board considered the combined effect of the movement of the Jet A-1 FOB prices and exchange rate of the Malawi Kwacha to the US Dollar as well as changes in local factors that determine the Jet A-1 prices and noted that the landed cost increased by 23.69% and 24.32% at Kamuzu International Airport and Chileka Airport respectively. Under the Automatic Pricing Mechanism, Jet A-1 qualified for an upward price adjustment since the In Bond Landed Cost (IBLC) changes went beyond the ±5% band at both airports.
However, the Board resolved to cushion the change in the landed costs of Jet A-1 through the Price Stabilization Fund and thus to maintain the maximum price of Jet A-1 in the month of April, 2018.
The Jet A-1 prices have been maintained as presented below:
All operators are required to sell Jet A-1 at prices not exceeding these maximum Jet A-1 prices.
Dr. Collins Magalasi
MALAWI ENERGY REGULATORY AUTHORITY
12th April, 2018