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 November, 2017 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 30.26% from USD440.35 USD/MT to USD573.59 USD/MT.
EXCHANGE RATE MOVEMENT
The Malawi Kwacha has remained stable since the last price review in July 2017 trading at K733.95 to 1USD in December 2017.
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 Jet A-1 qualified for a price adjustment since the In Bond Landed Cost (IBLC) changes of 18.45% and 18.93% for Kamuzu and Chileka international airports, respectively were beyond the ±5% trigger limit.
The MERA Board has however, resolved to maintain the maximum price of Jet A-1 for the month of December by using the accumulated Price Stabilisation Fund (PSF) to pay for the increased landed costs of Jet A-1.
The Jet A-1 prices have been maintained as presented below;
|Current Maximum Airfield Price (MK/Litre)||Recommended Maximum Airfield Price (MK/Litre)||Percentage Change|
All operators are required to sell Jet A-1 at prices not exceeding these maximum Jet A-1 prices.