REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN, NOVEMBER 2017

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

The average FOB prices of Petrol, Diesel and Paraffin increased in October 2017 when compared to the averages obtained in the month of October, 2016 used in determining the ruling pump prices.

The FOB prices of petrol, diesel and paraffin rose by 9.57%, 13.34% and 12.10% respectively in the month of October 2017 when compared to October 2016 FOB prices which form the basis of the ruling pump prices.

EXCHANGE RATE MOVEMENT

Since the last review of the In Bond Landed Cost (IBLC) of petroleum products in November, 2016, the Malawi kwacha has depreciated by 0.06% from K733.50/USD noted at the last price review in November 2016 to K733.95/USD noted in November 2017.

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 cost of Petrol, diesel and paraffin increased by 9.70%, 18.29% and 16.05%, 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 Board resolved to maintain pump prices for all the three products and apply the Price Stabilisation Fund (PSF) to cover the increase in the landed costs of the three petroleum products.

Fuel pump prices have therefore been maintained as implemented on 4th November 2016 as presented below:  

Product

Current Pump Price (MWK/Litre)

Recommended maximum pump price (MWK/Litre)

% Change

Petrol

824.70

824.70

-

Diesel

815.80

815.80

-

Paraffin

648.70

648.70

-

 

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
10th November, 2017