REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN IN THE MONTH OF OCTOBER 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 September 2018, the average FOB prices of Diesel and Paraffin  increased by 0.92%, 5.17% and 4.64% respectively 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 2018, 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 5.87%, 11.68% and 15.45%, 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 has noted the sustained high FOB prices of oil on the international market and resolved to revise upwards pump prices of all the three products to ensure that importers are able to fully cover importation costs and thus to enable sustained flow of petroleum products into the country.

Fuel pump prices have therefore been revised upwards effective 6th October 2018 as presented below:  

                    

Product

Current Pump Price (MWK/Litre)

Recommended maximum pump price (MWK/Litre)

% Change

Petrol

 888.00

 932.50

5.01

Diesel

 890.90

 935.60

5.02

Paraffin

719.30

755.30

5.00

       

 

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

5th October, 2018