REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN IN THE MONTH OF SEPTEMBER 2018.

BACKGROUND

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.

PETROLEUM PRODUCTS INTERNATIONAL PRICES

In August 2018, the average FOB prices of Diesel and Paraffin marginally increased by 2.06% and 0.85%, respectively, while FOB price of petrol declined by 0.30% when compared to the averages obtained in the month of June, 2018 used in determining the ruling pump prices.

EXCHANGE RATE MOVEMENT

Since the last review of the In Bond Landed Cost (IBLC) of petroleum products in July 218, the Malawi kwacha has remained stable trading at K733.95/USD.

PUMP PRICES

MERA assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the US Dollar as well as changes in local factors that determine the maximum pump prices and noted that the landed costs of Petrol, diesel and paraffin increased by 5.14%, 7.80% and 11.53%, respectively. The changes in the landed costs qualified all the three petroleum products for an upward pump price adjustment since the changes in the landed costs were beyond the ±5% trigger limit.

The MERA Board also noted stability of oil prices on the international market and resolved to maintain pump prices for all the three products while observing the FOB price movements and apply the Price Stabilisation Fund (PSF) to cover the increased landed costs of the three petroleum products.

Fuel pump prices have therefore been maintained as implemented on 17th July, 2018 and are presented below:  

Product

Current Pump Price (MWK/Litre)

Recommended maximum pump price (MWK/Litre)

% Change

Petrol

 888.00

 888.00

-

Diesel

 890.90

 890.90

-

Paraffin

719.30

719.30

-

       

 
All operators are required to sell petroleum products at prices not exceeding these maximum pump prices.

 

SIGNED

 

Rt. Rev. Dr. J.P. Bvumbwe

BOARD CHAIRPERSON

MALAWI ENERGY REGULATORY AUTHORITY

11th September, 2018