REVIEW OF JET A-1 PRICES IN THE MONTH OF SEPTEMBER 2018

BACKGROUND

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 marginally increased in August, 2018 when compared to the average FOB price obtained in the Month of June, 2018 on which ruling airfield prices are based. The FOB price of Jet A-1 increased by 0.85% from USD673.20 USD/MT to USD678.91 USD/MT.

 

EXCHANGE RATE MOVEMENT

The Malawi Kwacha has remained stable since the last price review of 17th July 2018 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. The Board noted that the Jet A-1 landed cost increased by 12.57% and 12.86% at Kamuzu and Chileka International Airports, 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.

 

The Board however, noted the stabilizing oil prices on the international market and resolved to maintain the airfield prices at both airports through use of the price stabilization fund while monitoring world price movements. Jet A1 airfield prices have therefore been maintained as follows:

 

Airport

Current Maximum Airfield Price(Kwacha per Litre)

Recommended Maximum Airfield Price(Kwacha per Litre)

% Change

KIA

829.95

829.95

 -

CHILEKA

780.92

780.92

 -

       

        

All operators are required to sell Jet A-1 at prices not exceeding these maximum Jet A-1 prices.

 

SIGNED

 

Rt. Rev. Dr. J.P. Bvumbwe

BOARD CHAIRPERSON

MALAWI ENERGY REGULATORY AUTHORITY

11th September, 2018