REVIEW OF FUEL PRICES, DECEMBER 2017.

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 November 2017 when compared to the averages obtained in the month of October, 2016 used in determining the ruling pump prices.

The FOB price of petrol, diesel and paraffin increased by 17.37%, 19.92% and 21.66% respectively in the month of November 2017.

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 December 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 15.35%, 23.51% and 23.28%, respectively. The change in the landed costs for all the three products is beyond the ±5% trigger limit which qualifies petrol, diesel and paraffin for an upward pump price adjustment.

The MERA Board, however, resolved to maintain pump prices for all the three products and apply the accumulated funds in the Price Stabilisation Fund (PSF) to cover the increased landed cost of the three products.

For the month of December 2017, fuel pump prices have therefore been maintained as presented below:   

 

Product

Current Pump Price (MWK/Litre)

Recommended maximum pump price (MWK/Litre)

% Change

Petrol

 824.70

 824.70

0

Diesel

 815.80

 815.80

0

Paraffin

648.70

648.70

0

 

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

 

SIGNED

 

Dr. Collins Magalasi
  MALAWI ENERGY REGULATORY AUTHORITY
8th December, 2017